September 21 (SeeNews) - Bulgarian telecommunication services provider Allterco has launched an initial public offering (IPO) on the Sofia bourse, hoping to raise up to 3.3 million levs ($1.88 million/1.7 million euro).
The company plans to triple its research and development staff to 45 by opening a new R&D center in Sofia, Allterco CEO Dimitar Dimitrov told SeeNews on the sidelines of a news conference at which the IPO launch was announced on Tuesday evening.
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Allterco is offering investors 1.5 million shares with a nominal value of 1.0 lev and an issue price in the range of 1.1 - 2.2 levs per share. The IPO will be considered successful if at least 750,000 shares are subscribed for.
Around 70% of the IPO proceeds will be used for the production, implementation and improvement of the company's projects for home control system SHE and for children's watches MyKi, Dimitrov added.
"Through the IPO of Allterco we want to achieve a lot in the robotics sector, in which MyKi and She are. We aim to launch new products on the market within three months instead of six months and to offer our products and services to 200 telecoms instead of 20," Dimitrov told reporters.
Allterco is currently negotiating offering the smart home controller system SHE through the distribution networks of mobile operators at home and abroad, as well as through construction companies.
"Interest in children's wrist watch MyKi is at its peak at present and it is constantly growing. We have a unique business model for its distribution through mobile operators," Dimitrov noted.
The company has plans to further develop its MyKi project in the next few years. Dimitrov said that more details will be revealed at a later stage.
MyKi and SHE products are made in Bulgaria by using China-manufactured parts produced under the supervision of a German company, Dimitrov said.
Allterco plans to reach earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 14% by 2020, up from an estimated 3% for 2016, according to a company presentation at the news conference .
Allterco operates on eight markets worldwide. The company's generates 43% of its revenues in Bulgaria, 16% in the U.S., 15% in Singapore, 14% in Romania and 10% in Malaysia.
In Southeastern Europe, the company has offices in Romania, Serbia and Macedonia.
Allterco partners with over 20 mobile operators in seven countries on three continents and its services reach around a billion users. The company had a turnover of over 28 million levs last year. It has over 100 employees, most of them based in Bulgaria.
(1 euro = 1.95583 levs)