The company on Monday attracted RON2.5 million from investors after the Offering was oversubscribed in 37 seconds, reaching a record subscription rate of 857%, respectively the biggest subscription rate of an offering carried out by a private company listed on the Bucharest Stock Exchange in the last six years, according to information sent to Ziarul Financiar.
A total 625,000 shares, respectively 20% of the company’s share capital, with a face value of RON0.2 per share, were sold to investors. Investors subscribed SAFE shares worth a total RON21.4 million. Following the private placement, Safetech’s market value reached RON12.5 million.
Once the company’s shares start trading on the alternative trading system AeRO of the Bucharest Stock Exchange, towards the end of 2020, SafeTech’s free-float will be 20%. Victor Gansac, the company’s Chief Executive Officer, and Paul Rusu, the company’s Chief Financial Officer, will each hold a 40% stake in the company.
The Offering targeted the sale of 625,000 ordinary, nominative shares by the issuer. Shares are issued in dematerialized form, with a face value of RON0.2 per share, at the offering price of RON4 per share, of which RON3.8 per share the issue premium.
The value of the Offering was RON2.5 million and the prerequisite for closing the private placement was the subscription of at least 80% of the value, respectively the subscription of minimum RON2 million. The minimum subscription was 5,000 shares, the equivalent of RON20,000, and the duration of the Offering is until October 30, 2020.
The private placement for Safetech Innovations shares was intermediated by brokerage firm TradeVille.
Cornerstone Communications assisted the company throughout the listing process and it will be licensed advisor for Safetech Innovations after the company’s shares start trading on the stock market.
Safetech Innovations was established in 2011 and collaborates with over 10 key institutions in the local financial-banking sector, with multinational companies and with local companies in the energy, FMCG, telecom, IT&C and transport sectors.
The company reported a turnover of RON10.5 million in 2019, up 56.4% on the year, and a net profit of RON1.25 million, up 26.3% on the year, with a net profit margin of 11.8%.
In January-June 2020, Safetech Innovations posted a turnover of RON5.3 million (up 60.7% on the year) and a net profit of RON450,246 (up 61.5% on the year). For 2020, the company targets revenue of RON15.6 million and a net profit of RON2 million. The company currently has 43 employees.