RAIKO Transilvania SA, producer of guttering systems, closes private placement having raised 1 million lei from Bucharest Stock Exchange investors
July 24, 2019
On July 23rd, RAIKO Transilvania SA, company specialized in production and sale of highest quality guttering systems, roofs as well as roofing accessories, has successfully closed private placement proceeding listing on the AeRO market of the Bucharest Stock Exchange. During the offer, which run between 15th – 23rd July, the company sold 1 million new shares and managed to attract 1 050 000 lei for its development. 29 retail investors participated in the offer, which was run by brokerage house Tradeville, with Cornerstone Communications assisting in investor relations and communication with the market. The capital raised during the private placement will be used primarily as working capital for buying production materials as well as expansion of the sales activities into the new regions of Romania.
RAIKO is a Romanian company established in 2014 in Căpușu Mare, Cluj county, by Tomasz Kurcin, who to date is the majority shareholder in the business and currently holds the position of the Chairman of the Board. Following the closing of the private placement, Tomasz Kurcin together with his wife, Katarzyna Wieszczek-Kurcin will hold estimated 67% of the company while the free-float will amount to 33%. Once it floats on AeRO, RAIKO will be the second company with majority polish capital to be listed on the Bucharest Stock Exchange, after polish fund Carpathia Capital listed on AeRO market in 2015.
“We are thrilled to see RAIKO’s private placement close successfully after just one week and we thank all the investors who subscribed to our offering for their interest and trust. The capital we have accessed will be almost instantly directed into investments so that we can meet our sales targets for 2019. We are very pleased with the significant interest coming from our clients, which assures us, that the quality of our products speaks best for itself and RAIKO is a good investment destination for those, who want to support businesses built on solid principles and with significant growth prospects” said Tomasz Kurcin, Chairman of the Board at RAIKO Transilvania SA.
The company intends to float on the AeRO market of the Bucharest Stock Exchange at the beginning of 4th quarter of 2019, as it plans to begin the formal procedures of admission to trading in the next period. Prior to its first day of trading however, RAIKO plans to carry out a second private placement, during which additional shares worth up to 600,000 lei will be put for sale. Launching the second offer is motivated by the high interest from foreign investors, who did not have sufficient time to subscribe in the first offering. Carpathia Capital, a polish pre-IPO fund listed on the Bucharest Stock Exchange will participate, among others, in the second capital increase, making RAIKO its third investment in Romania – after previously investing in Bittnet Systems as well as MedLife. Brokerage house Tradeville, who is the Authorized Adviser to the company, will also assist RAIKO in the second private placement.
“RAIKO has been the second private placement of shares successfully intermediated by Tradeville this month. I am pleased to see that the capital market has started to become a reliable source of financing for dynamic and innovative companies in Romania” said Mihaela Biciu, President and CEO at Romania’s largest retail broker, SSIF Tradeville.
In 2018, RAIKO has registered revenues of RON 4,1 million while the net profit reached RON 147,493, a 10% increase compared to the result from the previous year. By the end of 2018, RAIKO was the 9th largest player on the Romanian guttering market, having 3,1% market share, an increase of 0,5% compared to 2017. The total value of the Romanian rainwater systems market was estimated in 2018 at EUR 40,89 million.
The company currently has in its offer 3 key products – RAIKO guttering systems, which are characterized by above-average simplicity of installation, resistance and aesthetic. The company has 3 lines of guttering system products – RAIKO Premium, RAIKO Platinum and ECO RAIN. In 2018, the sale of RAIKO guttering systems contributed to 51% of the company’s revenues. The company has also a wide offer of roof coverings and accessories and was one of the first companies in Romania to have offered modular roof covering under the QUALES brand, which distinguishes itself by fast and easy installation, simplified transportation and offhand accessibility. In 2018, the sale of roof coverings contributed to 25% of companies’ revenue while the sale of flat sheets, which are used in the production of roof coverings as well as guttering systems and accessories, brought 24% of the company’s revenues.
With its products, RAIKO targets both business as well as individual clients. In 2018, estimated 40% of sales were through the wholesalers as the company has a long-standing relationship with merchants based both in Romania and the Republic of Moldova. Another 40% of revenues generated in 2018 were though the roofers, with whom the company cooperates in the area of complex implementation and supply of the roofs on the detached houses while direct sale to end-consumer contributed to 20% of the revenues generated last year.