Romanian cybersecurity firm Safetech, listed on the Bucharest Stock Exchange (BVB), announced plans to issue new shares to finance its expansion abroad particularly on the key markets of the UK and US.
The company’s shares rose another 6% upon the announcement, trading at multiples that — just like other tech firms on the BVB’s AeRO secondary market do — defy the fundamentals: a price to book value ratio of 30 and a price-earnings ratio of 59.
Based on the company’s documents to be discussed and approved by the shareholders on July 19, Wall-Street.ro concluded that the company aims to raise RON8mn (€1.6mn).
With the attracted capital, Safetech intends to set up two subsidiaries — one in London and another in Reston, Virginia in the US.
In both companies, at least 67% of the share capital will be held by Safetech Innovations and the remaining share capital will be held by a limited liability company registered in the UK, Astaria Sec Ltd. Astaria Sec Ltd is a UK based start-up owned by Anca Stancu, which will lead Safetech International's operations abroad.