November 28 (SeeNews) - Romanian agribusiness company Agricover Holding said that it has selected Wood & Company consultancy firm to assist it in its intention to launch an initial public offering (IPO) on the Bucharest Stock Exchange in order to raise capital to support its growth plans.
"The company’s management emphasizes that no decision has been taken on the preferred funding route. Such a decision will only be taken after assessing a number of criteria, including market conditions and feedback from potential investors," Agricover Holding said in a statement filed with the Bucharest Stock Exchange, BVB, on Friday.
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Agricover was established in 2000 by local entrepreneur Jabbar Kanani. The European Bank for Restructuring and Development (EBRD) became a shareholder in the holding company with 12.7% in 2017.
In 2018, Israeli-owned crop protection company Adama Agriculture BV became a significant strategic investor in one of its subsidiaries, Agricover Distribution, with shareholding interest of 10%.
The holding's subsidiaries are Agricover Distribution , Agricover Credit IFN and Agricover Technology.
In 2021, the holding generated a consolidated revenue of 1.7 billion lei ($361 million/ 345 million euro) and 104 million lei in consolidated net interest income.
Also, the value of the loans and advances granted to farmers by its financing subsidiary, Agricover Credit IFN, reached 1.9 billion lei at the end of 2021.
In March 2021, Agricover Holding listed a 40 million euro ($42 million) five-year bond on the BVB to support the lending operations of Agricover Credit IFN.
(1 euro=4.9266 lei)