November 5 (SeeNews) - Bulgarian producer and distributor of organic products Smart Organic intends to list on the Frankfurt Stock Exchange in the long-term perspective if it manages to wrap up the acquisition of an unnamed Germany-based peer, the company's founder and owner Yani Dragov said.
The company first aims to fulfill its plans for a 3 million euro ($3.5 million) initial public offering (IPO) on the Bulgarian Stock Exchange before it starts trading on the foreign bourse, Dragov said, as seen in a video file published on the company's Facebook profile earlier this week. The company's owner also said that he can not give a specific time frame for the listing on the Frankfurt bourse.
Smart Organic will offer for subscription on the Sofia bourse SME growth market BEAM up to 310,000 ordinary shares with an issue price of up to 18.90 levs ($11.10/9.70 euro) but no less than 15.30 levs on November 11. The IPO will be considered successful if a least 200,000 shares are subscribed and paid for, the company said in a bourse filing published late on Thursday.
If all offered shares are subscribed for, Smart Organic's capital will be distributed in 10,310,000 shares.
In September, Smart Organic said that it plans to use the proceeds of its IPO on the Sofia bourse for the acquisition of an unnamed German competitor and the construction of a new production plant.
Dragov said in the video file that the target company sells products under a well known brand for organic snacks and superfoods in Germany. The company is not engaged in production acivities, so if the acquisition is successful the manufacturing of the German company's products will be carried out in Smart Organic's plants in Bulgaria.
The production plant which the company plans to build will spread on 12,000 sq m in Bozhurishte Industrial Zone, near the capital Sofia. The start of construction activities is scheduled for July 2022, Dragov said.
Dragov added that Smart Organic will also use bank loans to finance the acquisition of its German peer and the construction of the production base.
Smart Organic was founded in Sofia in 2009 and is currently among the leading producers and distributors of organic food in Europe. Through its network of distributors and retailers, the company's products are available in more than 60 countries worldwide - in the EU, as well as in Asia and the Americas, according to information published on Smart Organic's website.
The company is making most of its products at its own factory in Sofia which spreads on over 6,000 sq.m.
(1 euro = 1.95583 levs)