Shares of Elvila SA, symbol ELV, a leading furniture producer in Romania, started trading on the Alternative Trading System of Bucharest Stock Exchange (BVB) in the AeRO Premium category as of February 1, 2018, following a technical listing. Technical listing is the process by which a company shares start trading on a stock exchange without the need for any prior public offer, which means that the company’s shareholding structure is not affected in any way, and the firm decides to take advantage of being a public company, such as additional visibility, credibility or transparency.
“We have decided that Elvila will enter the AeRO market of BVB following technical listing to ensure maximum transparency of the company, especially as I am more than ever involved in politics, and to enable the minority of shareholders to trade their assets within an organized and efficient framework. In the future, depending on the evolution of the market, we do not rule out taking into account the issuance of additional shares or bonds,” said Viorel Cataramă, President-General Manager of Elvila and founder of the company.
“The presence of a new Romanian entrepreneurial company on the stock exchange is a strong signal that transparency can be valued in money on the capital market, the place where the value of a business can be maximized. The continuation of company listings on the stock exchange is essential for increasing the investors’ interest in the capital market and implicitly for growing the level of turnover in the market,” said Adrian Tănase, CEO of BVB.
The listing was intermediated by the brokerage company IFB Finwest. “We had enough arguments to convince the majority shareholder of the benefits of the company’s presence on the capital market. We’re glad we managed to bring Elvila to BVB and that we opened the listing season of 2018 on the stock exchange,” stated Octavian Dragolea, manager of the Bucharest-based branch of IFB Finwest.
The furniture producer Elvila operates 25 stores nationwide, including 14 own stores (in Alexandria, Bacau, Botosani, Beius, Brad, Brasov, Bucuresti, Cluj-Napoca, Constanta, Focsani, Iasi, Oradea, Mizil and Ploiesti) and 11 franchised stores. The company has three production plants in Mizil and Babeni (Valcea county) and in Beius (Bihor county), and reports a workforce in excess of 800 employees. Elvila had a RON 52.2 million turnover last year, and a net profit worth nearly RON 1 million.