Subscriptions in the JT Grup Oil offer exceeded 15 million lei

Subscriptions in the offer of fuel distributor JT Grup Oil exceeded the threshold of 15 million lei, according to our calculations based on information gathered from the platform of a brokerage company.

The market operation started on Tuesday, May 28, and until yesterday at 14:00, investors had issued purchase orders for about 2.32 million shares, the equivalent of almost 15.1 million lei, given that the subscription price is of 6.5 lei per title.

The company intends to sell a maximum of ten million new shares, with subscriptions in the first five working days of the offer benefiting from a 16% discount, so that the price that investors will actually pay will be 5.46 lei per share. The last discount day is June 3, and the market operation will end on June 10, according to the information in the listing document, prepared by Interdealer Capital Invest.

JT Grup Oil is one of the most important companies operating on the fuel distribution market, the company is going to use the money attracted from the market to expand the range of services and invest in new projects and technologies to make operations more efficient.

Steluţa Lebidov, CFO of the fuel distributor, said: "We want the money we get from the IPO to be a co-financing for the rest of the resources we already have at our disposal. We specify that, at this moment, we have the necessary financing for the completion of the terminal in the port of Constanţa, an investment of 25 million euros obtained from three sources of financing: own capital, a line of credit at Unicredit Bank in the amount of nine million euros and a large infrastructure grant of 11.5 million euros. We have a well-defined operational model, and the investment in our own terminal on the Black Sea will ensure the necessary infrastructure to fulfill our strategic objectives".

The offer will be considered successfully concluded regardless of the value of the subscriptions, the minimum threshold of a subscription being 300 shares, respectively 1,950 lei. The end of the offer will be followed by the listing on the AeRO Market of the Bucharest Stock Exchange.

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, according to the information in the memorandum.

Last year, JT Grup Oil had operating revenues of 225.8 million lei, 25% below those obtained in 2022, and a net profit of 5.7 million lei, down 9% compared to the previous year.

According to the company, the reduction in revenues was caused by the drop in fuel prices, from 6.61 lei/liter (average selling price) in 2022 to 5.72 lei/liter in 2023. Also during 2022, JT Grup Oil sold fuels to customers in Ukraine, deliveries which, last year, it made only in the first quarter, due to the socio-political and economic conditions in the country.

Jean-Paul Tucan owns 90% of the company, while Bogdan Florin Aldea has 10% of the fuel distributor, according to information in the listing document.