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DN Agrar Group debuts on the AeRO market and increases the representation of the agricultural sector on the capital market

2/2/2022

DN Agrar Group, an entity established in 2008 in the central area of Transylvania and operating in the agricultural sector of vegetable and livestock production, debuted today, February 2, on Bucharest Stock Exchange’s AeRO market, under the stock ticker DN. The company attracted from investors, prior to the listing, in a private placement held in July 2021, the amount of RON 24.7mn. The funds are intended for the expansion of DN Agrar Group through farm acquisitions and group development.

‘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 increase. Romania has a significant potential in the agricultural sector, and the capital market is a solution for all the farmers in the country who need capital necessary for development. Good luck to the DN Agrar Group team’, said Radu Hanga, Bucharest Stock Exchange President.

‘We want that the moment of listing the shares of DN Agrar Group on Bucharest Stock Exchange’s AeRO market 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 set ourselves will be achieved and that our confidence in the future of the agribusiness sector in Romania will be an expected success’, said Jan G. de Boer, DN Agrar Group’s CEO and Chairman of the Board.

The listing of the shares follows a private placement for shares held in July 2021. A number of 117 individuals and legal entities subscribed for 13,631,408 new shares, with a nominal value of RON 0.2 and a subscription price of RON 1.81 per share, representing 25,7% of the share capital. The private placement and the listing were carried out with the support of BRK Financial Group

‘The listing of DN Agrar Group increases the number of issuers in the agricultural sector who have chosen the capital market as a way of financing, and in this case, we are talking about the market leader in the segment of cow's milk producers. DN Agrar Group has undertaken a very ambitious series of projects, and some of them have been fulfilled and I am referring to the acquisition and integration in the group structure of the Lacto Agrar farm, respectively the steps regarding the takeover and integration of the Apold farm. Through this listing, we are completing a new reference transaction concluded by BRK Financial Group and we will remain with the company as an Authorized Advisor’, said Razvan Rat, BRK Financial Group Deputy CEO.

DN Agrar Group includes 11 companies operating in areas such as livestock management namely raising dairy cattle, field crops production, services in agriculture, logistics, transport, consulting and management services and tourism. To these is added a recently taken over farm, Lacto Agrar, with funds obtained from the private placement held in July last year.

In the field of vegetable production, the group's farms currently cultivate, together with the Lacto Agrar farm, over 3,000 hectares of agricultural land, located in Alba and Hunedoara counties. As for the number of livestock owned by the group's farms in the middle of last year, together with the Lacto Agrar farm, it registered more than 3,300 head 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 will be added 46 people employed for the Lacto Agrar farm.

DN Agrar Group registered, in July 2021, a net turnover of RON 18.2mn, an increase by 62% compared to H1 2020 (RON 11.2mn). The group's profit during this period was RON 2.1mn, up from the reported result for H1 2020 of RON 701,130. The recently taken over Lacto Agrar farm registered, in H1 2021, a net turnover of RON 16.3mn and a profit of RON 1.2mn.