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December 6, 2021
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Grup Șerban Holding announces intention to list on the AeRO market of the Bucharest Stock Exchange

Grup Șerban Holding, a Romanian entrepreneurial company active in several areas of agriculture, announces the intention to list on the AeRO market of the Bucharest Stock Exchange (BVB).

The company plans to float on BVB under the GSH ticker symbol before the yearend. In November, Grup Șerban Holding will carry out a private placement brokered by TradeVille. It intends to raise from investors through a share capital increase 25 million lei to accelerate its expansion plans.

The capital market is a viable option for developing agricultural businesses. We have been analyzing for some time the potential listing of the company on the Bucharest Stock Exchange, and I am convinced that we are ready for this step. Since 2019 we have started a complex investment process within the company to develop all the business lines of Grup Șerban Holding. The investments are focused on increasing vegetable production and storage capacity, expanding the poultry farm areas, and increasing the production capacity of bakery products. Thus, by listing on the stock exchange, we want to bring next to us new investors to support us in accelerating and completing these investments,” stated Nicolae Șerban, founder of Grup Șerban Holding.

Grup Șerban Holding was founded in 1994, in Onești. The group’s business is currently expanding in several development directions, such as agriculture, cereals trading, oil plants and vegetables, poultry farming, bakery, pastry-confectionery, and own chain of stores – Băcăniile Șerban, distribution, and transport. The group has over 400 employees engaged in projects to capitalize on the company’s brand nationwide.

The company operates over 12,000 hectares of arable land in Vaslui, Vrancea, and Bacău counties, where cereals such as wheat and corn and oilseeds – sunflower, rapeseed are cultivated. Also, Grup Șerban Holding owns and operates storages with a total capacity of over 133,000 tons of cereals and oil plants in eight bases located in Orbeni, Filipești and Valea Seacă, Bacău county, Simila, Zorleni and Găgești, Vaslui county and Târgu Frumos, Iasi county. These warehouses can receive 500 tons of cereals per hour, and their drying capacity is 2,000 tons in 24 hours.

In 2004, Grup Șerban Holding developed a new line of business, poultry farming. Today, it owns five farms, in three locations, with a capacity of 880,000 heads per series, located in Bacău and Vaslui counties. Also, in 2008, the company diversified its business by expanding in the field of bakery, pastry, and confectionery. Currently, the group owns a bakery, a confectionery laboratory, and five stores under the Băcănia Șerban brand. The total production capacity of bakery products is 15 tons per day. The bakery products are available both in own stores, Băcăniile Șerban, as well as in almost all supermarkets in the country, under the Granero Șerban brand. The group also has a business line in its portfolio of services dedicated to the operation of owned land and the transport of raw materials and cereals.

The capital raised in the private placement will contribute to the continuation of the group’s development projects. For vegetable production, the company envisages the development of vegetables by rotation – potatoes, cereals, and other vegetables, including sugar beet, resulting in a production capacity of 1,500 ha within an irrigated system for the agricultural year 2021-2022, having concluded contracts for potatoes for industrialization with PepsiCo. For the storage capacity area, Grup Șerban Holding aims to develop a warehouse with controlled ventilation and temperature for bulk and boxes vegetables with a storage capacity of up to 4,000 tons by Q3 2022. Within the poultry farm, the company aims to extend the poultry breeding areas, from 44,000 sqm to 80,000 sqm, by starting the lifting works of some poultry modules, located in Sascut, Bacău county, having expertise in the technological process of slow-growing chickens, as well as broiler, for Agricola International Bacău. Grup Șerban Holding is also working on investment projects in irrigation systems for 2,800 ha in Lunca Siretului. Currently, at that location, the company irrigates 1.000 ha and estimates that in the coming years will increase the irrigation capacity by up to 500 ha per year.

For the bakery business line, Grup Șerban Holding plans to acquire a new bakery line in the medium and long term by accessing a program with non-reimbursable funds to increase the production capacity. At the same time, the company aims to launch on the national market three more bakery products and to start delivering confectionery products to major hotel chains in the area of Moldova and later, across the country.

In 2020, Grup Șerban Holding registered, at a consolidated level, a turnover of 311.8 million lei and a net profit of 24.2 million lei. For 2021, the group estimates consolidated revenues of 330 million lei and a net profit of 24.6 million lei.

 

About Grup Șerban Holding

 

Grup Șerban Holding is a group of companies in full expansion, founded with Romanian capital in Onești in 1994. The group structure is integrated and has the following fields of activity: agriculture, cereals trading, oil plants and vegetables, poultry farming, bakery, pastry-confectionery, public catering (own chain of stores – Băcăniile Șerban), distribution, and transport. The mission of the Grup Șerban Holding is to offer quality products and services, create an environment where employees can make the most of their potential, and develop a reliable brand for Romania and beyond.

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