Agroland Agribusiness went public on the AeRO market of Bucharest Stock Exchange
Agroland Agribusiness went public today on the AeRO market of Bucharest Stock Exchange (BVB), after a private placement for shares, through which the company raised 6.07 million RON from investors. The company’s shares are traded under the AAB ticker. The funds will be used to develop the company and finance investments in fixed assets, mergers & acquisitions, as well as to invest in agricultural startups.
Agroland Agribusiness is part of the group Agroland and is the second company in the group to come on the AeRO market, after the mother-company,.
“We are pleased with the opening of the Agroland team for the capital market, but also with the increase of the representativeness of the agribusiness segment on Bucharest Stock Exchange. Diversified investment options on the capital market are a basic element in the development of any market. Each new company that is financed through the capital market financing mechanisms contributes to the growth of the local capital market. Bucharest Stock Exchange is the right place for the development of companies, regardless the field in which they operate or the financing needs”, said Radu Hanga, Bucharest Stock Exchange President.
“The listing on Bucharest Stock Exchange is a very important step for Agroland Agribusiness, for which we have been preparing for several months and which we would not have been able to do without the trust and support of investors, to whom we are grateful. The experience we have gained within the Agroland group in the last five years have helped us a lot and have shown us that listing is the best solution to harness the company’s growth potential. The field in which we operate, that of inputs for organic and conventional agriculture, is a very important one for the development of Romanian agriculture. We believe that the current post-pandemic context is favorable to accelerating the expansion of Agroland Agribusiness, and listing has been the most natural step in this direction. The success we have had with the private placement has shown us that we are ready for the next stage, the listing on Bucharest Stock Exchange. I strongly believe that this is the beginning of an extraordinary stage for Agroland Agribusiness”, said Florin Radu, Agroland Agribusiness CEO.
In April 2021, Agroland Agribusiness conducted a private placement in which it sold 225,000 newly issued shares, with a minimum subscription in the offer of 5,000 shares (RON 115,000). The private placement was oversubscribed by 15 times on the very first day and the final price was set at RON 27/share. The shares were bought by 154 investors, of which 25 qualified investors and the remaining 129 retail investors (5 Romanian legal entities, the rest individuals).
Agroland Agribusiness began its activity in 2016 as a division of the mother-company Agroland Business System, and from 2017 it operates independently legally and financially. The company has two business lines: the sale of inputs for conventional and organic agriculture and grain trading. In 2020, Agroland Agribusiness recorded a turnover of RON 18.44 mn (+88% compared to the previous year). Net profit achieved was RON 1.2mn (+231% compared to the previous year), with a net margin of 6.82%, up from 3.86% in 2019.