DN Agrar Group, an entity established in 2008 in the central area of Transylvania and active in the agricultural sector of plant and livestock production, debuted on Wednesday, February 2, on the AeRO market of the Bucharest Stock Exchange, under the stock symbol DN.
At 12:00 p.m., DN shares registered an increase of almost 15% compared to the price of the private placement carried out by the company in July 2021, at 2.08 lei per unit, against the background of transactions worth 4.1 million lei, it shows BSE data.
At this price, DN Agrar Group’s capitalization reaches over 110 million lei, according to ZF’s calculations.
“We want the moment of the listing of DN Agrar Group shares on the AeRO market of the Bucharest Stock Exchange to mark the company’s entry into the next stage of development. We are confident that the financing levers offered by the capital market are favorable for our business structure. We are convinced that the ambitious goals we propose will be achieved and that our confidence in the future of the agribusiness sector in Romania will have the expected success”, says Jan G. de Boer, CEO and Chairman of the Board of Directors of DN Agrar Group.
The company attracted 24.7 million lei from private placement investors, the funds being intended for the expansion of DN Agrar Group through the acquisition of farms and the development of the group.
“DN Agrar Group is a company long awaited by investors and we are glad that with its presence on the stock exchange, both the representation of the agricultural sector on the capital market and the investment diversification options for investors are increasing. Romania has significant potential in the agricultural sector, and the capital market is an optimal solution for all entrepreneurial farmers in the country who need capital for development. Good luck to the DN Agrar Group team”, says Radu Hanga, President of the Bucharest Stock Exchange.
As part of the private placement, a number of 117 individuals and legal entities subscribed for 13.63 million new shares, with a nominal value of 0.2 lei and a subscription price of 1.81 lei per share, representing 25, 7% of the share capital. The private placement and the listing of the shares were carried out with the support of BRK Financial Group.
“The listing of DN Agrar Group increases the number of issuers from the agricultural sector that have chosen the capital market as a way of financing, and in this case we are even talking about the market leader in the segment of cow’s milk producers. DN Agrar Group has taken on a very ambitious series of projects, and some of them have been fulfilled, and I am primarily referring to the acquisition and integration into the group structure of the Lacto Agrar farm, respectively the steps regarding the takeover and integration of the Apold farm. With this listing, we are bringing to completion a new reference transaction concluded by BRK Financial Group and we will remain with the company as an Authorized Consultant”, said Răzvan Rat, Deputy General Director of BRK Financial Group.
DN Agrar Group currently includes 11 companies active in fields such as animal husbandry, namely raising dairy cattle, agricultural vegetable production, services in agriculture, logistics, transport, consulting and management services and tourism. To these is added the Lacto Agrar farm, recently taken over with funds obtained during the private placement of last July.
In the field of vegetable production, the farms in the group currently cultivate, together with the Lacto Agrar farm, more than 3,000 hectares of agricultural land, located within the counties of Alba and Hunedoara.
As for the herds of animals owned in the middle of last year by the farms in the group, together with the Lacto Agrar farm, they registered over 3,300 heads of dairy cows, with a production of 75,300 liters of milk per day.
At the end of 2020, 116 people were employed at the group level, to which 46 people employed for the Lacto Agrar farm will be added.
DN Agrar Group recorded a net turnover of 18.2 million lei in mid-2021, up 62% compared to S1/2020 (11.2 million lei). The group’s profit during this period was 2.1 million lei, up from the result reported for S1/2020 of 701,130 lei.
The recently acquired Lacto Agrar farm had a net turnover of 16.3 million lei and a profit of 1.2 million lei in the middle of last year.
DN Agrar Group is 74.1% controlled by AM Advies BV, while 0.2% of the shares are owned by DN Agrar Cut SRL, and the remaining 25.7% of the share capital is shared by other investors, shows the BVB data.