Bulgarian investment company MFG Invest will invest the proceeds of a planned initial public offering (IPO) on the BEAM market of the Sofia bourse for investments in new companies, as well as for subsequent investments in companies that already its portfolio, its co-founder Stanimir Vassilev says.
“We are on the lookout for dynamic companies with highly motivated management who are fully committed to achieving business success, Vassilev told SeeNews in a recent interview.
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“Another very important factor for us is that we share a common vision and values,” he added.
On December 6, MFG Invest will be listed on the BEAM growth market of the Bulgarian Stock Exchange (BSE) offering 1,775,200 ordinary, registered, dematerialized, freely transferable shares with a nominal value of 1 lev and an issue value of 3.38 levs each. If the issue offered on December 6 is oversubscribed, up to 1 million more existing shares may be offered to investors at an issue value of 3.98 per share.
“We invest in start-up and growth companies in the field of fintech, e-commerce, technology. Part of our current portfolio are quite impressive companies such as Bulgarian’s first unicorn Payhawk, eBag, Boleron, Tiger Technology, Eleven Capital, LogSentinel, Settle, KOA, Pop and Vedamo,” Vassilev said.
“I believe we do have a second unicorn in the making among them, why not more than one.”
The company’s planned new investments as a result of the capital increase so far are additional investments in Tiger Technology and Eleven Fund III Cooperatief U.A. Netherlands, and new investments in Infinno, Ondo and NewPay.
MFG Invest is part of the MFG Group. The company invests in start-up and developing companies whose activity is in the field of technological financial services, e-commerce, creation and sale of technologies that have applications in various business areas such as, but not limited to: education, agriculture, security, storage of data and more. MFG Invest does not invest in companies that are at the ‘idea’ stage and do not have a developed product or permanent team.
“The reason we decided to start the company in the first place lies within our own experience as serial entrepreneurs over the tens of years we are in business. We know how difficult and challenging for people with great potential to find the necessary funding can be. So the need to help the development of the entrepreneurial environment came naturally to us," Vassilev commented. "We want to make sure that good ideas, behind which good teams stand, see the light of day, and that these entrepreneurs have the resources and time to do what they are passionate about and succeed in becoming the next best entrepreneurs."
Vassilev does not see the ongoing turmoil in global markets as a reason for concern regarding the success of the planned IPO.
“Anytime is a good time for a good company. We started this initiative with personal funds three years ago, we believe we are doing well and would like to speed it up now and share it with the public. We see there is demand from good entrepreneurs in the market, and this is a way to answer it," he said. "A small drop in the ocean, but who knows, it might satiate the thirst of the next Unicorn?”
If the listing is successful, MFG Invest plans to tap the market again.
"If everything goes well, and the value of the company increases with the desired speed, next year we’ll come back to the market for more growth fuel."
“One can not change the world with 6 million, but one could push into that direction,” Vassilev concluded.