Romanian cybersecurity firm Safetech to list its shares after heavily oversubscribed private placement

Romanian cybersecurity firm Safetech to list its shares after heavily oversubscribed private placement
By Iulian Ernst in Bucharest October 20, 2020

Romanian cybersecurity company Safetech Innovations announced that it closed a private placement for 20% of its shares within 37 seconds on October 19 and will list its shares on the Bucharest Stock Exchange (BVB). 

The company planned to raise RON2.5mn (€0.5mn) from Bucharest Stock Exchange investors, but the offer was quickly oversubscribed.

By the end of the day, the investors placed orders for 8.57 times more shares than the company had on sale. The investors were allotted shares on a pro-rata basis.

Following the private placement, the market capitalisation of Safetech Innovations is RON12.5mn.

The company's controlling shareholders are Victor Gansac, who is also the CEO, and Paul Rusu, the CFO, each holding 40% of the shares.

Once its shares float on the BVB’s AeRO market, Safetech Innovations' free-float will amount to 20%.

The company will use the money raised in the private placement for investments.

“Thank you to all investors for their interest in SAFE shares and we are pleased to welcome them to the Safetech Innovations shareholders. Their interest has completely exceeded our expectations and, together with our team, we are eager to work together to deliver solid financial results to all of our shareholders. The capital attracted today will fuel investments in the development of Safetech Innovations, which will help increase our share in the local market,” said Victor Gansac, CEO of Safetech, in a Facebook post on October 19. 

“We look forward to our trip on the Bucharest Stock Exchange and encourage all companies, especially those in the IT sector, to consider listing on the local market as part of their development strategy,” Gansac added. 

Founded in 2011, Safetech Innovations reached a turnover of RON10.5mn in 2019, 56.4% higher compared to 2018, and a net profit of RON1.25mn, 26.3% more than in 2018. The company thus had a net profit margin of 11.8%.

In the first half of 2020, company’s turnover rose by 61% y/y to RON5.3mn and its net profit went up by 62% y/y to RON450,000. For the full year 2020, the management expects RON15.6mn revenues and RON2mn net profit.

The company currently has 43 employees. Safetech Innovations is the only company in Romania accredited as a partner in the Nato Industry Cyber Partnership (NICP). The company has a broad portfolio of clients, having worked with more than ten key institutions from the local financial-banking sector, international players as well as local companies from the energy, FMCG, telecoms, IT&C and transport sectors.