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Romania's iHunt valued at 2.59 million euro in share listing

posted onJuly 10, 2019
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Shares of iHunt, a Romanian direct importer of mobile phones and accessories from China, started trading on the alternative trading system (AeRO) of the Bucharest Stock Exchange (BVB) on July 9, following the company’s IPO which was intermediated by Goldring, as Authorized Consultant.

iHunt (ticker symbol HUNT) is the first online retailer and mobile phone producer listed on the BVB.
Almost 1.7 million shares were traded on the first day, representing over 12% of all the company's shares.  According to the BVB, 516 transactions were made, with a total value of around RON 1.5 million. 

iHunt's stock began trading at 0.74 lei per share but the price rose up to a maximum of 1.1 lei per share in about 15 minutes.The company's shares ended the first trading day on AeRO at 0.865 lei. The closing share price puts iHunt's valuation at about 12,196 million lei (2.59 million euro).

Bucharest Stock Exchange’s AeRO section- where the listing requirements are looser than on the regulated market- is dedicated to Small and Medium sized Enterprises that meet the following criteria:

  • are a joint-stock company (SA)
  • have anticipated market value/ equity of at least EUR 250,000
  • will have 10% free-float (10% of the shares to be in investors portfolios, available for trading), or minimum of 30 shareholders

iHunt technology Import Export Ploiesti was established in 2015 in Ploiesti, a city 56 km north of Bucharest which has become a hub of foreign investment. The company started with two employees and a share capital of RON 200. By the end of 2018, it had 25 employees, a share capital of RON 1.4 million and a turnover of over RON 24 million from 24.1 million lei in 2017. 

The main shareholder of the iHunt is Cezar Catalin Stroe (99.5%), a young Romanian entrepreneur while Liviu Corneliu Stroe holds 0.5%.

In the beginning of December 2018, the company's associates decided to change the legal form of the limited liability company into a joint-stock company.

“The strategic objective of the company is to become, over a two-year timespan, the largest direct importer of Chinese mobile phones under its own brand, included in the portfolio of major local operators,” BVB said in a statement.  

According to the memorandum of the listing, iHunt intends to grant dividends to shareholders, striking a balance between investment policy and dividend policy, while taking into account investors' expectations.

"The current shareholders of the company intend to maintain the 50% of the net dividend yield," the prospectus states. 

iHunt is also one of the 15 finalists of the third edition of the Made in Romania project, organised by the Romanian capital market operator.

The initiative which started two years ago aims to promote Romanian entrepreneurship, improve transparency, visibility and ensure the further development of the companies.