The IPO of ELANA Agrocredit will take place from 11 September to 10 October 2013

The initial public offering of shares of ELANA Agrocredit will start on 11 September 2013. The company offers 15 mln. new ordinary shares with the nominal and issue price of BGN 1. The shares will give the right to a liquidation dividend as well. ELANA Agrocredit will subscribe for new shares till 10 October 2013. The results of the IPO will be announced on 11 October. The capital of the company is expected to increase to BGN 15.7 mln. The General Assembly has decided that the IPO will be considered successful if shares of value at least BGN 2 mln. are subscribed.

The prospectus for public offering of shares was approved by the regulatory body in July. The IPO manager is ELANA Trading.

ELANA Agrocredit – advantages for investors:

  • Low-risk investment – the collateral for the leasing contracts is the purchased agricultural land, which is owned by the lender until the customer pays off the leasing amount to the end; The agricultural producers will have 20% own contribution to the total price of the land purchase. The collateral and the own contribution ensure investors’ money in case the asset price decreases, which is very much unlikely;
  • Attractive return for a low-risk investment – the company plans 12% annual dividend yield and according to ELANA Agrocredit articles of association, minimum 90% of the company annual profit should be distributed as dividend to the shareholders;
  • Liquidity of investment – since the company will get listed on the Bulgarian Stock Exchange, investors can make easy exit on the stock market;
  • Management team with proven expertise and results – the investors can rely on the expertise of the team from ELANA that has already developed a profitable investment product related to the agricultural market.
IPO Terms
Current capital BGN 700 000
No. of shares to be issued 15 mln ordinary dematerialized shares
Nominal value of 1 share BGN 1
Issue price of 1 share BGN 1
Market capitalization after capital increase BGN 15 700 000
Subscription period 11 September – 10 October 2013
IPO Calendar
Publication of announcement re: the start of IPO 2 September 2013
Start of shares subscription 11 September 2013
Deadline for shares subscription 10 October 2013
Announcement of the shares’ distribution list 11 October 2013
Payment of shares 16 October 2013
Registrations by the institutions 23 October – 8 November 2013
Listing on Bulgarian Stock Exchange 29 November 2013