Investment opportunities in Romania's strategic industrial sector: ROCA Industry looking to raise RON 140.7 mln in private placement

• ROCA Industry, the first building materials holding in Romania, announces the end of the first stage (intended for the exercise of pre-emptive rights) and the launch of the second stage of the capital increase, in the form of a private placement.
• The share capital increase was approved by ROCA Industry shareholders in June 2023, and the prospectus related to its first stage, as well as the listing operation on the regulated market of the Bucharest Stock Exchange (BVB) of all ROCA Industry shares, was approved by the Financial Supervision Authority (ASF) in December 2023.
• The holding company issues, within the private placement, a number of 14,073,128 new shares, with a nominal value of 10 RON / share and a total value of RON 140.7 million. The placement runs in the period 16th – 30th of January 2024, with the possibility of anticipated closure.
• In the last year, ROCA Industry shares were, in total value, in the top 3 traded shares of the companies included in the BET AeRO index of the Bucharest Stock Exchange.
• The transfer of the holding to the BVB main market will give investors the opportunity to participate in the development of a strategic industrial sector, which can put Romania on the European map of construction material producers.

ROCA Industry, the first industrial holding of construction materials in Romania, listed under the symbol ROC1 on the AeRO market of the Bucharest Stock Exchange (BVB) and owned in majority by ROCA Investments, announces the completion of the first stage (intended to exercise the pre-emptive rights) in which 926,872 new shares were subscribed with a nominal value of 10 RON each, with a total nominal value of RON 9,268,720, and the start of the second stage of the capital increase consisting of a private placement, having as its object the actions not subscribed in the first stage.

The object of the private placement is a total number of 14,073,128 new shares, with a nominal value of 10 RON/share, of which a number of 5,641,277 new shares will be issued as a result of compensation with certain claims owed by ROCA Industry to ROCA Investments, the difference being offered for subscription in exchange for cash contributions. The total value of the capitalization round through private placement amounts to RON 140.7 million, according to the current report issued by the company on January 11, 2024.

At the end of 2023, the Financial Supervisory Authority (ASF) approved the prospectus for the capital increase (intended for the exercise of pre-emptive rights), with a maximum of 150 million lei, and the admission to trading of ROCA Industry shares on the regulated market of the Stock Exchange Bucharest (BVB). The capital increase takes place in two stages, the first between December 11, 2023, and January 10, 2024, with shares offered for subscription based on pre-emptive rights, followed by a private placement round, between 16 – 30 January 2024, with the possibility of early closing.

This step reconfirms the commitment of ROCA Industry to ensure additional sources of sustainable financing for the Romanian companies in its portfolio, through a transparent and accessible trading environment for investors. The holding company aims to further strengthen its position in the construction materials industry in Romania and aims to use the funds resulted following the capital increase for investments in strategic projects and the expansion of the portfolio of companies and products.

"The beginning of the year comes with a sustained increase in the interest of investors, which reflects their confidence in the huge prospects of the Romanian industry, but also in our know-how to create European-level industrial performers. We are confident that this second stage of the capital increase will considerably support us in our goal of reaching a capitalization level of over 50 million euros," declares Ionuț Bindea, CEO of ROCA Industry.

Effervescent activity on the financial market. The steps of the transition to the BVB main market

With a presence on the AeRO secondary market of the BVB since January 2022, the ROCA Industry holding has had a dynamic course on the local financial market, being now in full transition to the main market. In 2023, ROC1 shares were, in terms of total value, in the top 3 traded shares of the companies included in the BET AeRO index.

According to the holding's reports, in the first 9 months of 2023, ROC1 shares attracted a liquidity of RON 6.0 million on the AeRO market of BVB, with a daily average of RON 32.0 thousand and an average daily turnover of over 3,6 thousand shares.

At the business level, the productive companies within the building materials holding company ROCA Industry recorded a cumulative turnover of RON 439.2 million in total amount, an increase of 7.9% compared to the first 9 months of 2022.

For 2024, a specialized analysis anticipates a boost to the construction sector, due to the development of sustainable and innovative construction materials, as well as a focus on transport infrastructure and clean energy infrastructure, with the funds allocated for these strategic directions playing a significant role in supporting construction industry.

Portfolio of 8 high-performing companies with international experience and ambitions

ROCA Industry directly and indirectly owns a number of 8 companies - performers in the specific sectors of activity: BICO Industries (the first and largest national producer of fiberglass mesh and the only domestic producer of fiberglass reinforcements, with a presence for over 30 years on the market), EVOLOR (one of the largest players in the paint and varnish production industry, also with over 30 years of market experience), ECO EURO DOORS (the largest Romanian manufacturer of doors intended for residential constructions), DIAL (the company specialized in the manufacture of wire products), ELECTROPLAST (one of the most important producers of electrical cables), as well as the fiberglass producers Terra, Europlas and Iranga (indirectly owned through BICO Industries).

In 2023, BICO, the Central and Eastern European leader in the production of fiberglass mesh and the third largest producer in the European Union, strengthened its position on the regional market, despite its contraction. By completing the acquisition of Iranga Technologijos from Lithuania and taking over a 45% stake in Europlas from the Republic of Moldova, BICO intensified its efforts for geographical expansion. The company is present on the markets of Poland, Great Britain, France, Slovakia, Portugal, Baltic and Nordic countries.

EVOLOR started export activities in 2023, with products reaching the markets of the Republic of Moldova and Israel. Also in 2023, EVOLOR completed the acquisition of a former paint factory, located in the Oltchim platform, a factory that will increase production capacity and the possibility of launching new products starting in 2024.

Part of the ROCA Industry portfolio since June 2023, ELECTROPLAST is one of the largest manufacturers of low-voltage copper and aluminum electrical cables with a market history of over 30 years. The company reports 2023 as the best in its history in terms of sales.

*This is a press release.