Agricover Holding, one of the most important players on the agribusiness market, announces that it will run the initial public offer for the sale of shares at the Bucharest Stock Exchange (BVB) from Thursday, May 4 and until May 16, according to a BVB announcement.
The subscription price will be 0.5 lei/share, in an offer of a maximum of 416 million lei. The selling shareholders are businessman Jabbar Kanani, who will sell up to 404.3 million existing shares, and the European Bank for Reconstruction and Development (EBRD), which will sell up to 151.2 million existing shares.
The net funds raised will be used to support the growth strategy envisaged by the Group.
The value of the free float following the Offer will depend on the number of new shares issued by the Company and the number of existing shares sold to new investors in the Offer. However, the free float is expected to be at least 40% if no stabilization actions are taken. Agricover founder Jabbar Kanani, who currently owns 87.269% of the share capital, will own the majority of the company’s shares after the offer is completed.
Currently, the principal shareholders of Agricover are Jabbar Kanani, with a stake of 87.269%, and EBRD, with a stake of 12.727%.
Agricover Group was founded in 2000 by local entrepreneur Jabbar Kanani. In 2017, the European Bank for Reconstruction and Development became a major institutional investor in Agricover Holding, which currently holds 12.727% of the Company’s share capital. Also in 2018, Adama Agriculture BV became a significant strategic investor in Agricover Distribution SA, holding 10% of the subsidiary’s share capital.
The group had, on December 31, 2022, 510 permanent employees and a total number of 518 temporary employees and trainees.