Photo: HR Capital

Bulgarian fund HR Capital, specialized in investments in digital transformation businesses, will attempt to raise up to BGN 2.5m on the growth segment BEAM of the Bulgarian Stock Exchange (BSE) via two round IPO on 15th -17th December. On the first day 330k newly issued ordinary shares with an issue price of BGN 4.48 (nominal value of 1.00 BGN) will be offered to the public. If the investors’ interest translates into a higher than 1.5x oversubscription for the issue, there will be a second offering on December 17th of up to 200k existing shares from one of the existing shareholder Web Finance (related to the founder of HR Capital, Hristo Hristov) at the same minimum issue price (BGN 4.48) as the first round. As a result, the cumulative offering of the IPO can total up to 550k shares or BGN 2.46m. The IPO would be considered successful if at least 67.6% (223.2k shares) of the first offering is subscribed and paid for. Given all the offered shares are subscribed, the HR Capital ‘s post-IPO capital would increase to up to 3 037 733 shares, all trading on BEAM and yielding a BGN 13.6m potential market capitalization of the compant. The proceeds of the IPO are planned for new investments as well as for reinforcing the current portfolio of companies and funds.

About HR Capital

HR Capital is founded in 2016 and targets investments in promising tech companies that provide digitalization services to high-growth sectors such as healthcare, hospitality, logistics, and agriculture. Current portfolio consist of leading Bulgarian online grocery retailer eBag, first BEAM listed company – BIODIT, doctor appointment platform Superdoc and telemedicine and online doctor consultations platform Healee, leading media and marketplace in the field of agriculture Agrigate Media, as well as investments in other funds such as Endeavor Catalyst, Eleven 2.0 and Eleven 3.0 that provide access to global innovative unicorn companies.

For the last 4 years, HR Capital has achieved 3.5x return on invested capital and H1 2021 results reveal net profit of BGN 3.6m (up 93.6% y/y), coming mainly from revaluations. HR Capital stated that it plans to distribute 50% of its earnings as dividends. One-time distribution of dividends in a form of shares is envisaged for FY2021, where investors will receive two new shares for each existing share they own after the adoption of the audited annual report for the year.

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