JT Grup Oil debuts tomorrow in Piata AeRO

• The company comes to the stock exchange at a valuation of 156 million lei, according to the price paid by most investors in the public offering

Fuel distributor JT Grup Oil debuts tomorrow on the AeRO Market of the Bucharest Stock Exchange (BVB), after an initial public offering that ended in the first part of June. During the market operation, the company collected almost 20 million lei from investors, about a third of the total offer, with 3.6 million new shares being subscribed.

The price per share was 6.5 lei, but in the first five days of the offer, when 98% of subscriptions were made, investors benefited from a 16% discount, so the price actually paid was 5.46 lei per title.

The company comes to the stock exchange at a valuation of 156.3 million lei, according to our calculations based on the discount price from the offer, i.e. a Price to Earnings ratio of about 27, taking into account last year's profit of 5.73 million lei.

According to the public offering document prepared by Interdealer Capital Invest, the company will use the money raised from investors to finance business growth, taking into account the anticipated potential of foreign markets. Essentially, it is about:

-launching a new line of activity, by opening fueling stations in commercial centers, intended for private customers;

-development of activities on the fuel distribution market by increasing the volumes of fuel traded on the local market and increasing the visibility of the company on a national level;

-the completion of the fuel terminal, within JT Terminal Constanţa SRL, which can operate specific products for the handling of biodiesel and diesel products, as well as the injection of biodiesel into diesel with the final aim of delivering diesel fuel to the domestic and/or foreign market.

The company has a dividend policy that takes into account the principle of balanced distribution of the net result, so as to meet both the expectations of the shareholders and the development needs of the company.

Also, if the performance allows it, the distribution of free shares is considered, it is also mentioned in the document related to the public offer. Last year, JT Grup Oil had operating revenues of 225.8 million lei, down 25.6% compared to 2022, while net profit amounted to 5.7 million lei, 9% below the one from the previous year. According to the company, the reduction in revenues was caused by the drop in fuel prices and the lack of deliveries to Ukraine for most of the year.

For this year, the company estimates revenues from the sale of goods of 331.6 million lei, which would grow by more than 90% in each of the next two years, up to 632.2 million lei in 2025 and 1.23 billion lei in 2026. Net profit is estimated at 11.76 million lei, which would grow strongly to 26.9 million lei in 2025 and 52.1 million lei in 2026, according to information in the offer document.

The company is controlled by Jean-Paul Tucan who before the offer had 90% of the fuel distributor. According to the publication Replica Online, Jean-Paul Tucan has been an extremely active politician for a long time, as a local PNL councilor in Năvodari, where he also ran for mayor. He was also the president of PNL Năvodari and leader at the national level of the party, later becoming the country's vice president of ALDE.

The shares of JT Grup Oil, a company founded in 2001, will be traded on the Bucharest Stock Exchange under the symbol JTG.