RAIKO Transilvania SA to launch a second private placement for its shares in Q1 2020

February 5, 2020

RAIKO Transilvania SA to launch a second private placement for its shares in Q1 2020

 

Bucharest, 5 February 2020 – RAIKO Transilvania SA, a company specialized in production and distribution of guttering systems, roofs as well as roofing accessories, prepares to launch a new private placement for its shares before the end of the first quarter of 2020. 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 1,050,000 lei from 29 Bucharest Stock Exchange investors. The company’s shares are yet to float on the AeRO market of BVB and the management will finalize all the procedures for admission to trading following the closing of the second offer.  

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. Similar to the scope of first financing round, 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 the foreign markets. Brokerage house Tradeville will assist RAIKO in carrying out the offer and then subsequently, listing the shares on the AeRO market on the Bucharest Stock Exchange. 

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 this transaction. 

Thanks to the success of the first financing round that took place in July 2019, for the full-year 2019, the management estimates revenues of 5,000,000 lei, +22% compared to 2018, and a gross profit of 260,000 lei, an estimated 60% increase 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 the years 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 5,000,000 lei in revenues on the foreign markets alone. The countries of focus for RAIKO will be the Baltics, Scandinavia, Czech Republic, Russia as well as Ukraine. The company also intends to launch in the coming months a new line of products under the AluRAIKO brand, which will include rainwater systems with a 25-years warranty that will primarily target restoration projects. Other plans for 2020 include launching a range of environmentally friendly products, that will include the rainwater collection system that will allow the recycling of the rainwater and promote water-saving on all markets of RAIKO’s activity, as well as introduce bio-degradable packaging for all the products in order to become, within the next few years, a zero-waste company. 

RAIKO is a Romanian company established in 2014 in Căpușu Mare, Cluj county, by Tomasz Kurcin, who holds the position of the Chairman of the Board. 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 while the company’s free-float will amount to 47%. 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.

By the end of 2018, RAIKO had an estimated 3,1% share in the Romanian guttering market, 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.

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