Simtel Team a technology and engineering company founded 11 years ago by three graduates in Electronics and Telecommunications went public on the AeRO market

7/1/2021

  • Simtel Team, a Romanian technology and engineering company, founded in 2010 by three Electronics and Telecommunications graduates, went public on the AeRO market, under the ticker SMTL.
  • The company carried out a private placement of shares in May 2021, attracting RON 13.7mn from investors. The funds will go to investments in the renewable energy division, M&A transactions, the development of photovoltaic projects and a platform for monitoring and operating charging stations for electric cars.
  • The company expects considerable investments in the construction of photovoltaic power plants in the next 7 years and announces that it will use the capital market mechanisms for financing.
  • The private placement and listing were done with the support of BT Capital Partners. After listing Cornerstone Communications will assist Simtel Team as Authorized Advisor.

 

Simtel Team, a Romanian technology and engineering company, founded 11 years ago by three Electronics and Telecommunications graduates, debuted today, on July 1st, on the AeRO market of the Bucharest Stock Exchange (BVB). Founded by Iulian Nedea, Sergiu Bazarciuic and Radu Vilau, the company has become a leader in Romania in over a decade of activity in the construction of photovoltaic power plants. Simtel Team operates in three business areas: renewable energy, telecommunications, and industrial automation, and for each of these business lines delivers projects both in Romania and abroad. Simtel Team shares are traded under the ticker SMTL.

‘The listing of Simtel Team is an important moment not only for the company but also for us, Bucharest Stock Exchange. The story of Simtel Team is a successful one. It is an entrepreneurial company founded by three graduates of a specialized faculty, a complex one through the services offered and the fields of activity it brings under the same umbrella: renewable energy, automation, and telecommunications. It is the twelfth company listed on the stock exchange since the beginning of the year, with a total capitalization of RON 300mn. Today, once again, Bucharest Stock Exchange proved that it is the right place for Romanian entrepreneurs and to support their business’, said Radu Hanga, Bucharest Stock Exchange President.

‘We are thrilled to mark today the beginning of Simtel Team’s journey on the Bucharest Stock Exchange. We thank all the investors who decided to invest in SMTL shares and in our ambitious business development plan. Together with Sergiu and Radu we are happy to see among the shareholders our employees and partners, but also new investors who decided to trust us with their capital. Since the beginning of this year, we have assembled a new executive team with unparalleled business, financial and capital markets expertise and our key goal is to deliver the best results to all our investors. Although only a month has passed since the private placement, we have already implemented some of the plans proposed there: we are in advanced negotiations with two companies for M&A, we have started a new line of business for the distribution of photovoltaic equipment which have already brought us revenues of over 100,000 euros and we are working on the development of a large photovoltaic park. We find ourselves in a unique moment as the context is favorable for all our business lines and we are determined to use actively stock market to grow our business both in Romania and abroad’, said Iulian Nedea, CEO and cofounder Simtel Team.  

The listing of Simtel Team comes after a private placement of shares, at the end of May 2021, through which the company raised RON 13.7mn from investors. 154 individual and professional investors participated in the private placement through which Simtel Team sold 15% of the share capital, respectively 1,055,000 shares at a price of RON 13/share. The capital raised from investors will support the company's investments in the renewable energy division, as well as for the development of the B2B distribution subdivision of components and materials needed in the construction of photovoltaic energy projects. Also, part of the capital will be used for M&A type transactions, and the rest for the development of photovoltaic projects and a platform for monitoring and operating charging stations for electric cars. The private placement and listing were done with the support of BT Capital Partners, and after listing Cornerstone Communications will assist Simtel Team as Authorized Advisor.

‘We are delighted to be with Simtel Team on the road to financing on the capital market, through the Bucharest Stock Exchange. Our mission at BT Capital Partners is to be always with innovative companies in Romania and to support them in their development plans. We are honored to be part of Simtel's success story and confident that once listed on the Bucharest Stock Exchange, the company will benefit from the capital market mechanisms to continue its ambitious growth plans’, said Daniela Secara, CEO of BT Capital Partners.

‘Since our first meeting, it was clear to us that Simtel Team is the perfect company for the BVB investors – founded and led by visionary entrepreneurs, recognized in their niche, always one step ahead of the market, with a diversified business structure and a hunger to grow. But above all, it is a company that delivers upon promises and values transparency and open communication. We are excited about the ambitious development plans of the founders, and we look forward to continuing our collaboration with Simtel’s executive team to deliver top quality investor relations that will benefit all Simtel shareholders’, says Zuzanna Kurek, founder of Cornerstone Communications.

Prior to the private placement, the company's founders sold 113,400 shares to 41 employees, at a price of RON 0.2 per share, to reward them for their support in developing the business. The founders also sold a number of 25,200 shares, at a price equal to the one from private placement to 6 other shareholders. After the closure of the private placement, the founders sold 5% of the share capital (352,750 shares) to Paval Holding, at a price equal to the one from private placement. Following these operations, the three Simtel founders - Iulian Nedea, Sergiu Bazarciuc and Radu Vilau - hold a 78% stake in the company, while 2% is owned by Simtel employees. The remaining 15% of the company is owned by the 154 investors who participated in the private placement.

Simtel Team ended 2020 with a turnover of RON 42mn and a net profit of RON 3.95mn, up from 2019, a year ended with a net profit of RON 1.13mn. Of the total turnover generated in 2020, 69% of revenues came from renewable energy projects, 28% from telecommunications projects and 2% from industrial automation projects. For 2021, the company estimates revenues of approximately RON 60mn and a net profit of RON 6.3mn. Revenues are expected to grow at an accelerated pace over the next five years, reaching RON 108mn in 2025 and with an average annual dynamic of + 21% between 2020 and 2025. This increase in revenues is mainly supported by the energy business line. renewable, which is estimated to increase by about 26% annually.

In the next 7 years, Simtel Team announces considerable investments in the construction of photovoltaic power plants for customers in Romania. To finance these projects, the company wants to attract capital from capital market investors, through share capital increases or corporate bond issues.