The shares of the Romanian cybersecurity company Safetech Innovations (SAFE) will start trading on the Bucharest Stock Exchange's AeRO market on Friday, January 29.

In October 2020, the company raised RON 2.5 million (EUR 500,000) from local investors through a private placement managed by local brokerage firm Tradeville. Based on that transaction, the company's estimated market capitalization is RON 12.5 mln (EUR 2.6 mln).

However, the share price will likely jump significantly on the first day of trading, given the investors' high interest in Safetech's shares. The private placement in October closed in just 37 seconds, and the investors placed total orders worth RON 21.4 mln, 8.57 times more than the available amount.

Last week, another company that debuted on the AeRO market, DIY retailer Mam Bricolaj (MAM), recorded a 50% increase on the first day over the private placement price.

Safetech's main shareholders are Victor Gansac, CEO, and Paul Rusu, Chief Financial Officer, with 40% each. The company will use the money drawn from investors to co-finance the development of an excellence center for cybersecurity and resilience of critical infrastructures (SafePIC), a EUR 4 mln project that is 70% financed by the Research Ministry. 

andrei@romania-insider.com

(Photo source: Inquam Photos/Diana Oros)