May 26 (SeeNews) - Bulgarian software and IT services group Bianor Holding [BUL:BNR] said that it kicked off a process for a capital increase from 675,222 levs ($370,610/345,234 euro) to 1.22 million levs via a new share issue.
Bianor will offer for subscription 545,000 new ordinary voting shares with an issue price of 17 levs each and par value of 1 lev apiece, the company said in a statement on Thursday. Current shareholders and those who purchase existing shares within five days of the capital hike notice being published will receive rights to subscribe for new shares, with some 1.24 rights corresponding to one new share.
The capital increase will be considered successful if no fewer than 106,000 new shares are subscribed and paid for. Bianor stands to make 9.27 million levs if all shares are subscribed.
The company plans to use the raised funds to expand its portfolio of software companies, aiming to create a synergistic ecosystem of technology companies and establish the group as one of Bulgaria's leading IT firms in terms of capitalisation.
"The capital increase is a step in the implementation of our plan for the active development of Bianor. We are building Bianor as a group of successful specialised software companies that, working together, generate significantly higher added value than individually," Bianor CEO Kosta Yordanov said.
Sofia International Securities will act as investment intermediary on the capital increase.
In March, Bianor signed a definitive agreement to acquire local software developers Itido Technologies and Databreathe as part of its strategy to complement organic growth through acquisitions of Bulgarian software companies. The company expects its revenue to double and its profit per share to increase as a result, it said.
Shares in Bianor last traded at 19.80 levs on the BaSE market of the Bulgarian Stock Exchange, bourse data show.
(1 euro = 1.95583 levs)