Agricover Holding S.A. announces intention to float on the Bucharest Stock Exchange

Agricover Holding S.A. (“Agricover” or the “Company”, and together with its subsidiaries, Agricover Distribution S.A., Agricover Credit IFN S.A. and Agricover Technology S.R.L., the “Group”), a player in the agribusiness market in Romania, announces its intention to pursue an Initial Public Offering (“Offer”). The Offer will include a maximum number of 145,436,236 new ordinary shares issued by the Company as a part of a share capital increase, as well as up to 800,622,551 existing ordinary shares held by its current shareholders,  Jabbar Kanani and the European Bank for Reconstruction and Development (“EBRD”) (together referred to as the “Selling Shareholders”). The Offer will take place after the approval of the offer prospectus (“Prospectus”) by the Romanian Financial Supervisory Authority (“FSA”).

“Over the course of two decades, Agricover has been a steadfast supporter of farmers, providing them with access to input technologies, financing solutions and emerging digitalization, which promote sustainable and responsible agriculture in Romania. Our unwavering commitment to sound corporate governance principles, pragmatic and prudent management, transparency, and accountability has helped us emerge as a prominent player in the Romanian agricultural sector. Despite facing unprecedented challenges in recent years, Agricover has consistently delivered improved financial results and captured a growing market share. As part of our sustainable development strategy and aligned with our ambition to define the agriculture of tomorrow, we are thrilled to announce our intention to list Agricover on the Bucharest Stock Exchange. Building on our successful 40 million euros bond issuance from 2021, our goal is to raise further capital for development and welcome new investors into our journey towards success,” stated Jabbar Kanani, Chairman of the Board of Directors at Agricover Holding.

The Offer will consist of a public offering to retail and institutional investors in Romania and an offering to eligible investors outside Romania, in accordance with the provisions of the Prospectus. Following the approval of the Prospectus by the FSA and the successful closing of the Offer, Agricover intends to apply for admission to trading of the shares on the regulated market operated by the Bucharest Stock Exchange (“BVB”). WOOD & Company Financial Services, a.s is acting as Sole Global Coordinator and the Bookrunner for the Offer. S.S.I.F. TRADEVILLE S.A. is acting as the Retail agent for the Offer.

The Group was founded in 2000 by local entrepreneur Mr. Jabbar Kanani. In 2017, the European Bank for Reconstruction and Development became a significant institutional investor in Agricover Holding S.A., currently holding 12.727% of the Company’s share capital. Additionally, in 2018, Adama Agriculture BV became a significant strategic investor in Agricover Distribution S.A., holding 10% of the subsidiary’s share capital. With 22 years of industry experience and an entrepreneurial approach to business development, Agricover is today a group of companies that serves the Romanian agribusiness sector by addressing essential farmer needs. Through its subsidiaries, the Group provides farmers with a range of integrated agricultural inputs, financing, and digital solutions intended to increase farming productivity, reduce operating costs, finance activity and growth, and develop efficient and sustainable agricultural business models.

The Group has two main business segments: agricultural inputs distribution, carried out by Agricover Distribution S.A. (“Agribusiness”), and specialized financing for farmers provided by a non-banking financial institution, Agricover Credit IFN S.A. (“Agrifinance”). The two segments jointly generate most of the Group’s revenue and operating results.