Alser Forest takes the first step on the capital market with bonds worth EUR 1.5mn

6/30/2021

  • Alser Forest, a company operating in the forestry sector, came to Bucharest Stock Exchange by listing its bonds worth EUR 1.5mn.
  • The company carried out a private placement of bonds in April 2021 and managed to attract from 64 investors the necessary funds for business consolidation. The capital infusion had immediate effects in increasing sales and profitability, according to the company representatives.

 

Alser Forest, a company operating in the forestry sector in Romania since 2008, listed today, June 30th, the company’s bonds on Bucharest Stock Exchange’s (BVB) Multilateral Trading System. The company carried out a private placement of bonds worth EUR 1.5mn, money that are used for business consolidation. The bonds are traded on Bucharest Stock Exchange under the ticker ALS24E. Alser Forest offers services in several directions: the supply and maintenance of automated equipment specific to the forestry sector, the supply of equipment for the entire forest production chain, for horticulture, construction, and forestry.

‘We are glad that Bucharest Stock Exchange message reaches more and more entrepreneurs, who work in various sectors. Today, the bonds of a company from Sacele, Brasov County, are listed on the local stock exchange, a company that used for development the capital raised through the capital market. Financing is essential for any business, and today, by listing Alser Forest’s bonds, we are putting a new brick for the development of the Romanian economy. Congratulations to Alser Forest team and good luck on the stock exchange!’, says Radu Hanga, Bucharest Stock Exchange President.

‘Alser Forest has chosen to finance through the capital market to increase its stocks of modern equipment and machinery for the forestry sector. This capital infusion had immediate effects on increasing sales and the company's profitability. Thus, on June 30th, 2021, we have a turnover equal to that of 2020, and the net result of the company in the first half of 2021 exceeds by 26% the net result of the entire year 2020. The year 2021 has thus become the best in the company’s 13 years of existence in Romania. We want to become the market leaders in the forestry sector in terms of sales of modern imported equipment and machinery and at the same time to participate in the development of the forest seedling production sector using modern Swedish technology’, says Albert Serban, Alser Forest President.

The company carried out in April 2021 a private placement of bonds worth EUR 1.5mn. The bond issue includes 15,000 corporate bonds with a nominal value of EUR 100/bond and an interest rate of 8%, with a maturity date on April 30th, 2024. The minimum subscription was EUR 5,000, and 64 investors subscribed in the private placement. The listing was made with the support of Intercapital Invest, as Authorized Advisor.

‘Intercapital Invest supports the financing of companies through the capital market and provides support in their preparation for listing. There are many advantages of listing. In addition to access to finance, so necessary for the development of any company, by adopting the principles of corporate governance, companies benefit from an increase in visibility, as well as an assessment of the market value needed for any entrepreneur who wants to grow the business. The listing also provides access to investors, those without whom this process cannot take place. Alser Forest has proven vision, ambition and an authentic business model, key elements for companies that want to grow through the stock market. Investors know that the probability of success increases when the company works with an experienced team and management that understands the capital market mechanisms. Congratulations to Alser Forest Team!’, says Mihaela Stoica, Intercapital Invest CEO.

Alser Forest ended 2020 with a turnover of RON 14.9mn, down from 2019 when it recorded a turnover of RON 20.2mn. The decrease was an effect of the Covid-19 pandemic, with customers being more cautious about investing and modernizing their equipment fleet. Despite this fact, the company's profit for 2020 increased significantly, from RON 90,499 in 2019 to RON 960,190 in 2020.

For 2021, Alser Forest estimates an increase in turnover and implicitly in profit. According to the company's calculations, at the end of this year, the company will exceed RON 20mn in turnover, and the estimated profit will exceed RON 1.6mn. The estimated increases are based on optimizing operating expenses and concentrating sales on high-profit products. Alser Forest also has a growing trend for the new sectors it has entered during 2020, the market for horticultural and construction equipment, as well as in the field of forestry. The company has already initiated the steps to expand the activity in the Republic of Moldova andby the end of this year the first Alser Forest seedling nursery across the Prut River will start operating.

The company's strategy for the next period includes the development of the 6 sales centers in the country (Sacele, Pitesti, Bacau, Vatra Dornei, Cluj, Deva). The company will give also to its clients the option for a direct financing from Alser Forest for the purchase of equipment and machinery. Alser Forest is also consider opening new territorial sales centers.

The main shareholders of the company are Albert Serban (60%), Dia Skogen SRL (20%) and Anapurna Capital SRL (20%). Dia Skogen SRL and Anapurna Capital SRL are 50% - 50% owned by Albert Serban and Irina Serban.