Vifrana - a new wine producer listed on the Bucharest Stock Exchange

5/14/2021

  • Vifrana, a Romanian producer of organic wines, went public today on the AeRO market of the Bucharest Stock Exchange under the ticker BIOW
  • Radu Hanga, President of the Bucharest Stock Exchange: "We are pleased to give the opportunity to investors to diversify their portfolios, as well as to support companies in their growth plans, through stock market financing mechanisms"
  • It is the 7th company listed on the AeRO market since the beginning of 2021 and the 1st producer of organic wines listed on the Bucharest Stock Exchange

 

Vifrana, a Romanian producer of organic wines, went public today, May 14th, on the Bucharest Stock Exchange (BVB) AeRO market, under the ticker BIOW. It is the 7th company listed on the AeRO market since the beginning of this year and the first organic wine producer present on the Bucharest stock market. The company's listing follows a private placement held at the end of 2020 by which Vifrana attracted RON 9,5 mn from investors.

"Vifrana is the first producer of organic wines listed on the AeRO market. We are pleased to give the opportunity to investors to diversify their portfolios, as well as to support companies in their growth plans, through stock market financing mechanisms. The agribusiness sector is much better represented at BVB following several listings of  companies from this field in the last two years and we hope that this trend will continue. The success of any round of financing depends largely on the company's story and the broker’s support. The financing attracted in the case of Vifrana is a proof of this good collaboration ", said Radu Hanga, President of the Bucharest Stock Exchange.

"We want to stimulate investors' interest in a Green Deal business started 12 years ago and which has matured and opened a unique chapter in the history of Romanian companies with domestic shareholders. The next step is to strengthen Vifrana's internationalization by opening new foreign markets in addition to those where it currently operates successfully. Sustainability is the main vector we want to maintain at the highest level. We think and act in the spirit of new European and global guidelines by offering clean wines with zero carbon footprint. Nature in a glass of wine! I invite you to taste it together", said Octavian Vucmanovici, General Manager and Chairman of the Board of Directors of Vifrana.

 

In December last year, the company carried out a private placement through which it sold to 87 investors a number of 21,220,322 shares at a price of RON 0.45/ share. Goldring is the Authorized Consultant who assisted Vifrana in the private placement and listing on the AeRO market.

„We are happy to intermediate the listing on the stock market of a company focused on ??organic agriculture, respectively Vifrana, Romanian producer of organic wines and successful exporter on foreign markets. We love the profile of the activity, especially in the Green Deal horizon, but also the Vifrana’s dynamism, the company being currently at beginning of an accelerated growth trajectory. The success of the private placement confirms the interest of investors to diversify their portfolios with investments in emerging sectors and we are looking forward to see the evolution of both the Vifrana business and the BIOW shares on BVB”, said Virgil Zahan, Goldring General Manager.

Vifrana was established in 1998 and it reoriented towards the cultivation of vines and the production of wines in 2006, when the base of the organic vineyard was laid. Currently, the company produces organic wines and manages the Vifrana winery that processes the entire grape production from its own vine culture (130 ha) in the Adamclisi area, Dobrogea. The vineyard is not subject to chemical treatments, is being treated organically, respecting the requirements imposed by the ecological certification bodies. Vifrana wine is DOC certified and is certified by Austria Bio Garantie. The wines are sold mainly through store chains, both internally and externally, thus ensuring the certainty and predictability of receipts and cash flow.

The company recorded a 34% increase in the number of wine bottles sold in the Q1 2021, compared to the same quarter in 2020 and sold 97% more bottles of Rose wine in the same period. The estimated turnover for 2020 is RON 5,4mn. Vifrana strategy presume the development of company’s presence in foreign markets like Germany, the Netherlands, Sweden and the United Kingdom, where organic products sales increased by 20% in 2020, and the growth of the BIO sparkling wines market is estimated at 47%.