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Romania's Holde Agri Invest to hike capital, plans Bucharest listing

Romania's Holde Agri Invest to hike capital, plans Bucharest listing Holde Agri Invest

BUCHAREST (Romania), November 29 (SeeNews) - Romanian farming company Holde Agri Invest said on Friday its shareholders have approved a 6.0 million euro ($6.6 million) capital hike and a subsequent listing on the AeRO market on the Bucharest Stock Exchange.

The company plans to raise the capital necessary for expansion and further acquisitions through a private placement, which will be followed by floating shares on the AeRO market, it said in a press release.

"We have the ambition to become one of the largest local players on the Romanian agricultural market but for that goal to achieve, we need constant access to capital during our accelerated growth phase. We believe in the potential of Romanian agriculture, especially if it is done right – with the help of technology, proper motivation but also people who can add value," Holde Agri Invest CEO and founder Liviu Zagan said.

Holde plans to become a company of reference in the Romanian agricultural sector, investing in the acquisition or leasing of the land under a model similar to that of a real estate investment trust (REIT). In the medium to long-term, the goal is to own 25% of operated land while having 75% of land in leasing, the company explained.

"So far, the Romanian capital market has been missing a sector that is so vital to the Romanian economy, namely agriculture. We are sure that with Holde we will not only fill the gap, but we will also grow the appetite of the local investors for this industry," Holde Agri Invest board member and founding shareholder of Certinvest, Eugen Voicu, said.  Certinvest is an asset management company which holds an 8% stake in Holde. 

Holde Agri Invest has 25 shareholders, the biggest one being Vertical Seven Group owned by Iulian Circiumaru and Andrei Cretu with a 25% stake.The remaining shareholders have holdings between 0.1% and 9% in the business. The business model envisages that no single shareholder owns a majority stake. 

In September, Holde Agri Invest successfully closed its first round of financing, during which it has raised 5 million euro from local investors and investment funds. The money obtained was directed into the expansion of the operated land, which today stands at 3,500 hectares, as well as into purchasing equipment, including a silo with deposit capacity of 10,000 tonnes as well as machinery, such as combine harvesters, tractors and agricultural implements, all equipped with precision farming systems.

($ = 0.9081 euro)