Safetech Innovations shares debut on AeRO

The debut to trading of Safetech Innovations  shares will be marked by the official opening of the trading session at the BVB headquarters, which will take place on January 29.

The listing of Safetec Innovations, a cyber security compnay, on the AeRO market will be within BVB’s Multilateral Trading System (MTS). Safetech Innovations shares will be traded under the SAFE ticker.

Radu Hanga, BVB Chairman of the Board: ”We are delighted with Safetech Innovations’ entry on the Bucharest Stock Exchange stage, first of all because it is the first cyber security company, a very important and growing industry. Just as many entrepreneurs are beginning to understand the importance of cybersecurity, so they are beginning to understand how useful the capital market is for their business and to support their development, especially in this difficult time caused by the pandemic”.

Victor Gansac, Safetech CEO: ”Today’s listing of SAFE shares on the AeRO market of the Bucharest Stock Exchange marks a new chapter for Safetech Innovations. We are thrilled that 140 individual and institutional investors participated in the private placement and we thank them for trusting the Safetech brand. We have ambitious plans for the future and we are confident that, following today’s listing, we will be able to grow at an even faster pace, delivering the highest quality cybersecurity solutions to Romanian companies”.

Victor Gânsac, co-founder and sole administrator of Safetech Innovations says that the company’s target is to reach a profit margin of 25 percent in the upcoming years “to prove that IT companies, besides the accelerated rise, can also provide consistent profits for investors”.

He revealed that 140 individual and institutional investors have attended the private placement.

“The private placement together with those EUR 40 million originating from a project of EU non-refundable funding that we are carrying out at present cover all our needs of growth for the next 5 years at least,” Gânsac said.

Safetech Innovations’ listing follows a private placement of shares, carried out in October 2020, through which the cybersecurity company attracted RON 2.5mn from investors on the capital market. A total of 625,000 shares were put up for sale to investors, at a price of RON 4/ share, and the subscription orders placed by investors accumulated RON 21.4mn, which indicates an oversubscription of over eight times the value of the offering.

“As of today, anyone has the chance to invest, on BVB, in the shares of a top Romanian company in a highly titrated field: IT security. We are talking about an authorized NATO provider, that has not only an innovative Research and Development Department, but also its own emergency response team. We therefore have the great chance to see how the Stock Exchange becomes an important element for the development of a national champion in an elite field. We hope that investors will be next to TradeVille and the Romanian capital market in the next offerings and placements, through which we will continue to support the development of companies representing a reason for pride and also a way of prosperity for the Romanian economy”, stated Ovidiu Dumitrescu, CFA, TradeVille Deputy CEO.

Along with TradeVille, Cornerstone Communications assisted Safetech Innovations in the listing process and acts as the company’s Authorized Consultant after the listing.

”When we first met Safetech Innovation team 2.5 years ago, we were convinced they had all the ingredients necessary for a successful issuer: unparalleled expertise, dedicated and passionate team as well as proven track record. Throughout our collaboration, Safetech has remarked itself with unrivalled professionalism, transparency, and precision, thus proving very early on that the stock market is the right place for them. We are convinced that Safetech Innovations will bring a lot of satisfaction and joy to Bucharest Stock Exchange investors and, together with Cornerstone team, we are thrilled to be there with them on their capital market journey”, said Zuzanna Kurek, Partner Cornerstone Communications.

Following the private placement, the market capitalization of Safetech Innovations reached RON 12.5mn, and the funds attracted in the private placement are directed to investments. By listing on the stock exchange and accessing capital, the company identifies an opportunity in the development of innovative services and solutions and products in the field of cybersecurity, but also in increasing technical capacity by developing the security testing laboratory. Investments in these new projects will be able to generate significant revenues, being based on patented technology.

Safetech Innovations was founded in 2011 and is the only company dedicated exclusively to information security in the Romanian market, which offers both services in the field of security and for the implementation of cybersecurity solutions. Safetech Innovations provides 24/7 cybersecurity monitoring and response, security audits, penetration testing, security risk management, and security governance services. The company owns and operates STI CERT – Safetech Innovations Computer Emergency Response Team, one of the first private CSIRTs established in Romania, internationally accredited, which provides companies in the private and public sectors continuous monitoring of cyber threats and intervention in case of incidents security. STI CERT offers a 24/7 monitoring, alerting, incident management and investigation system and covers all types of cyber security incidents through centralized methods, provided by a team of experts and ethical hackers.

Safetech Innovations is the only company in Romania accredited as a partner in the NATO Industry Cyber Partnership (NICP). The company has a vast portfolio of clients, collaborating with over 10 key institutions in the domestic financial-banking sector, with multinational companies, as well as local companies in the energy, FMCG, telecommunications, IT&C and transport sectors.

In 2019, Safetech Innovations recorded a turnover of RON 10.5mn, with an increase of 56.4% compared to the result of 2018 and a net profit of RON 1.25mn, with an increase of 26.3% compared to 2018. In 2019, the company had a net profit margin of 11.8%. In the first half of 2020, Safetech Innovations recorded a turnover of RON 5.3mn (+ 60.7% compared to H1 2019) and a net profit of RON 450,246 (+ 61.5% compared to H1 2019). For the entire year 2020, the management estimates revenues of RON 15.6mn and a net profit of RON 2mn. The company currently has 43 employees.

Safetech Innovations has a share capital of RON 625,000, divided into 3,125,000 shares with a nominal value of RON 0.2/ share. Victor Gansac, co-founder and Sole Administrator, and Paul Rusu, co-founder and CFO, each hold a package of 40% of Safetech Innovations shares, and the difference of 20% is in the portfolios of investors who have subscribed in the private placement.