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.
|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|
|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|