Сирма Груп Холдинг

By 15th Oct 2015, the deadline for subscription, orders for 9.5 million shares were placed in Sirma Group Holding ’s IPO, surpassing the threshold for success of at least 8.0 million shares. The share price, determined through a proportional allocation method, defined in the IPO prospectus, was BGN 1.20. Thus, all submitted orders shall be executed at the IPO price of BGN 1.20 per share. If all subscribed shares are paid by 21st Oct 2015, the IPO proceeds shall amount to BGN 11.5m (EUR 5.9m). The number of the shares subscribed represents 60% of all offered 16.0 m shares.

IPO results report for a strong interest by institutional investors, however, the retail investors slightly prevail.

IT industry on the Bulgarian Stock Exchange

By raising BGN 11.5m Sirma Group Holding’s IPO is officially the largest IPO on the Bulgarian stock market since the beginning of the financial crisis in end-2007.
Now the IT sector, which is the most dynamic industry in the Bulgarian economy, shall be represented by the largest Bulgarian software company. Local software industry forms 1.74% of the Bulgaria’s GDP and a 15% increase of revenues is anticipated for 2015 reaching BGN 1.37 bln. Sirma Group Holding itself has sustained a pace of 20-25% annual revenue growth in the last years.

Miroslav Stoyanov, Investment Banking Director in ELANA Trading, sole manager of the IPO, commented the results:

“I am extremely satisfied to be able to call “Sirma Group Holding” Jsco a successful issuer in such an unfavourable current condition on the international capital markets, but especially on the local one. The investors on the Bulgarian market are still quite careful and a lot of them preferred to wait for the trading to start instead of subscribing during the IPO. We believe that, through the implementation of this project we are initiating the return of the trust in those kind of financing instruments in both investors and potential issuers. Naturally, that sentiment change is never a speedy process, but with the efforts of all local capital market players, I believe it’s only a matter of time to increase our market appeal.”

Tsvetan Alexiev, CEO of Sirma Group Holding, stated:

“I am quite happy that our company managed to pass yet another milestone in its road of development. The project was tough and long, but its upcoming successful ending will let us continue with the declared investment program that will enable us to increase our presence in focus markets. I am grateful to all investors that granted our company the opportunity to say a bit more of how we do business. I also wish to thank all of those that believed in us through the submitted orders and I welcome them in the shareholders’ structure of “Sirma Group Holding” Jsco. Let us together continue its successful story.”

What’s next?

21st Oct 2015 is the deadline for payment of the subscribed shares, upon which all required institutional registration of the new shares shall be made.
According to the preliminary schedule, Sirma Group Holding’s shares are expected to commence trading on the Bulgarian Stock Exchange in December 2015.
The new shareholders shall be able to trade their shares since the first day of trading.

IPO Terms

At the start of the IPO of the largest Bulgarian IT company on 16th Sep 2015 16.0m new shares and 2.5m existing shares with nominal value of BGN 1.0 were offered in a price range of BGN 1.20-1.65. The IPO prospectus was approved by the Bulgarian Financial Supervision Commission on 21st Jul 2015.

All about Sirma Group Holding IPO 

Sirma Group Holding website