BUCHAREST (Romania), February 5 (SeeNews) – Romanian guttering systems manufacturer RAIKO Transilvania said on Wednesday that it plans to launch a new private placement of shares before the end of the first quarter of 2020.
RAIKO shares will be sold to investors in a private placement, which is an offer targeting up to 149 retail investors as well as an unlimited number of institutional investors, RAIKO said in a press release.
The capital raised during the second placement will be primarily directed into purchasing materials and goods to increase the production and sales capacity in order to meet the growing demand for RAIKO products, especially on foreign markets.
Brokerage house Tradeville will assist the company in carrying out the offer and then subsequently listing the shares on the AeRO market on the Bucharest Stock Exchange, BVB.
The second private placement is particularly targeting foreign investors. Carpathia Capital, a Polish investment fund listed on the AeRO market, has already committed to invest in RAIKO’s second placement and will be one of the anchor investors in the transaction.
This will be the second capital markets operation for RAIKO Transilvania, which in July 2019 sold 1 million new shares in a private placement and attracted 1.05 million lei ($243,000/220,000 euro) from 29 BVB investors.
The company’s shares are yet to float on the AeRO market of the BVB and the management will finalize all the procedures for admission to trading following the closing of the second offer.
Thanks to the success of the first financing round, the management estimates revenues of 5 million lei for 2019, up by 22% compared to 2018, and a gross profit of 260,000 lei, up by an estimated 60% compared to 2018 result.
Following the listing of RAIKO shares, which will have the RKOT ticker, the company plans to distribute a stock dividend to its shareholders, using part of the retained profits from 2018 and 2019. The proposal for the allocation of free shares will be made following the publication of 2019 financial results.
In 2020, RAIKO Transilvania expects to generate 5 million lei in revenues on foreign markets alone. The countries of focus for RAIKO will be the Baltics, Scandinavia, the Czech Republic, Russia and Ukraine.
RAIKO is a Romanian company established in 2014 in Capusu Mare, Cluj county, by Tomasz Kurcin, who holds the position of board chairman. Following the closing of the second private placement, Tomasz Kurcin together with his wife, Katarzyna Wieszczek-Kurcin will hold an estimated 53% of the company, with the remaining 47% in free float.
Once it floats on AeRO, RAIKO will be the second company with majority Polish capital to be listed on the BVB, after Carpathia Capital listed on the AeRO market in 2015.
(1 euro=4.7779 lei)