The initial public offering of Electro-Alfa International, one of the most important Romanian players in the electrical equipment and integrated energy projects industry, which aims to list on the Main Market of the Bucharest Stock Exchange (BVB), is expected to generate about 584 million lei, which the company will use for investments.
The company will issue up to 65.99 million new shares, equivalent to 35% of the total number of shares the company will have after the market operation, at a price between RON 8.35 and RON 8.85, with a listing step of RON 0.1. Thus, at the maximum price in the range, the value of the offer will amount to a sum close to 584 million lei, while the anticipated valuation of the company is between 1.57 billion lei and 1.67 billion lei, depending on the price at which the market operation will be concluded.
The offer has two tranches, with 10% of the securities being offered to retail investors and the remaining 90% to institutional investors, with the possibility of reallocation between tranches, meaning that the retail tranche can be up to 15% of the offer.
Retail investors will receive a discount of 5% from the final price during the first four days of the offer, i.e. up to and including February 5. ”The final offer price will be set by the company in consultation with the coordinating intermediaries, based on the expressions of interest made by Institutional Investors during the bookbuilding process”, says the prospectus of the offer, which also includes a 30-day stabilization program, if needed.
The company intends to distribute dividends in the amount of at least 301TPTP3T of consolidated annual net profit, a rate that allows the issuer to pursue future investment opportunities for growth while returning a portion of the profits generated to shareholders, the document said.
”The net funds raised by the company in the offer will be used to support growth through strategic acquisitions (including for the payment of the purchase price for the acquisitions of the shareholdings in Elcomex, Spiact and Electro Alfa CM), development of internal capacities (including for the companies to be acquired, Elcomex and Spiact), investments in energy generation and storage and innovation, as well as for expansion into foreign markets and raising working capital to participate in major projects, depending on opportunities and market conditions”, according to information in the listing prospectus quoted by Bursa.
For FY2025, the company estimates revenues of more than RON 800 million, EBITDA of more than RON 100 million and gross profit of around RON 100 million, based on estimated, unaudited and unrevised data. The performance confirms an accelerated growth momentum: in 2024, Electro-Alfa International reported revenues of RON 648.4 million and a net profit of RON 57.4 million, compared to RON 435.8 million in 2023 and RON 259.2 million in 2022, corresponding to a compound annual growth rate of more than 58% in the period 2022-2024.
The issuer is controlled by Gheorghe Ciubotaru, who owns 80% of the share capital, while Electro Alfa Management owns 20% of the share capital of Electro-Alfa International. Gheorghe Ciubotaru owns 51% of the share capital of Electro Alfa Management, a vehicle intended to reward members of the Board of Directors and key members of the company with indirect stakes in its capital, according to information in the prospectus of the offer, whose coordinating intermediaries are Swiss Capital and Unicredit.