Romanian cybersecurity company Safetech Innovations closed a private placement for 20% of its shares within 37 seconds on October 19.

The company planned to raise RON 2.5 million (some EUR 500,000) from Bucharest Stock Exchange investors, but the offer was quickly oversubscribed. By the end of the day, the investors placed orders for 8.57 times more shares than the company had on sale.

The investors were allotted shares on a pro-rata basis. Following the private placement, the market capitalization of Safetech Innovations is RON 12.5 mln (EUR 2.58 mln).

The company's controlling shareholders are Victor Gansac, who is also the CEO, and Paul Rusu, the CFO, each holding 40% of the shares. Once its shares float on the AeRO market, Safetech Innovations' free-float will amount to 20%. The company will use the money raised in the private placement for investments.

Founded in 2011, Safetech Innovations reached a turnover of RON 10.5 million (EUR 2.17 mln) in 2019, 56.4% higher compared to 2018, and a net profit of RON 1.25 mln (EUR 258,000), 26.3% more than in 2018.

The company thus had a net profit margin of 11.8%. In the first half of 2020, the turnover rose by 61% year-on-year to RON 5.3 mln, and its net profit went up by 62% year-on-year to RON 450,000. For the full year 2020, the management expects RON 15.6 mln revenues and RON 2 mln net profit. The company currently has 43 employees.

Safetech Innovations is the only company in Romania accredited as a partner in the NATO Industry Cyber Partnership (NICP). The company has a broad portfolio of clients, having worked with more than ten key institutions from the local financial-banking sector, international players as well as local companies from the energy, FMCG, telecom, IT&C, and transport sectors.

(Photo: Diana Oros/ Inquam Photos)

andrei@romania-insider.com