The IPO of "Transilvania Broker de Asigurare" begins tomorrow

The subscription period for the IPO of Transilvania Broker de Asigurare (symbol: TBK), will begin on October 24th. According to the prospectus published on Friday by the company, the subscription price range will be 12 lei - 15.5 lei/share.

The IPO will end on November 2nd. The minimum block of shares that can be subscribed by investors is 200 shares, and the price step is 0.01 lei.

Thus, the valuation of the IPO ranges will range between 7.5 million lei and 9.69 million lei, which means the company is valued between 30 million and 38.75 million lei.

The secondary sale offering, through which the insurance broker is putting on the market 625,000 shares, representing 25% of the company's share capital, will only have one tier. In the first two shares will be sold at a discount of 7% compared to the final price, while over the next three days, investors will receive a 3% discount.

The schedule for placing orders is 9:00-16:00 daily, throughout the entire duration of the offering.

The IPO will be considered successful if at the time of its closing at least 50% of the shares will have been subscribed.

If the offer is oversubscribed, the allocation on the buy side will be done according to the pro-rata principle.

The majority shareholder of the company is Gabriel Login, who holds 60% of the insurance broker, whereas Dan Niculae holds 40% of the company. Gabriel Login will sell 375,000 shares, while Dan Niculae will sell 250,000 shares.

Transilvania Broker de Asigurare, which was launched in November 2006, will be the first insurance company to be listed on the Bucharest Stock Exchange (BVB).

In 2016, the company was ranked third among insurance brokers, with a value of intermediated premiums of 360.17 million lei, after Safety Broker de Asigurare, (477.77 million lei) and Marsh-Broker de Asigurare cu (390.43 million lei), according to the prospectus of the offering.

The market share of the company increased over the last three years from 3.92% in 2014, to 5.8% in 2016, while the overall value of the market rose from 7.82 billion lei in 2014, to 9.39 billion lei in 2016.

The net profit in 2016 was 3.05 million lei, below that of 2015, of 3.26 million lei, and higher than in 2014, (1.34 million lei).

Last year, the company had operating revenues of 62.49 million lei, higher than those of 2015 and 2014, (nearly 56 million lei, and 39.03 million lei, respectively).

In 2016 operating expenses amounted to 58.88 million lei, higher than in 2015 and 2014, (52.2 million lei, and 37.45 million lei, respectively).

The 2016 operating profit reached 3.61 million lei, lower than that of 2015, (3.79 million lei), but higher than that of 2014, 1.58 million lei.

In 2014 and 2015, the company distributed in the form of dividends 100%, and 99.23% respectively of its profits. The 2016 profit distribution will be done after the listing of the company on the stock exchange.