The basic motives underlying the decision taken by Telematic Interactive Bulgaria to offer shares to investors and go on the Bulgarian Stock Exchange is the pursuit of full transparency, says the major shareholder in the company, Milo Borissov, before Forbes Bulgaria. “We want to show that gaming is an open and socially responsible business, creating trust among the participants on the market” he added.
The company will offer 400,000 shares of its capital increase in an initial public offering through book building with an emission price of each share set at between BGN 50 and 75. The subscription of the shares can be made through any investment intermediary in the period between 14 to 18 February of this year.
The company is expected to raise about BGN 20 million in the process of executing orders at their minimum price. Given investor interest, the majority shareholder, Eldorado Corporation AD, will offer for sale up to 400,000 existing shares in order to achieve higher liquidity. Upon a successful sale of all offered shares, freely traded will be 18.2% of the capital and the market capitalization of the company will be between BGN 200 and 300 million.
“Raising additional resources on the stock exchange will allow the company to implement plans for its expanded presence both on the Bulgarian but also on new foreign markets – such as Peru, the Ukraine and Kenya. These are markets with significantly lower intensity of competition than the well-established European markets and, what`s more, they are familiar to the company which already has a presence through the local offices in these countries. The b2b segment is already represented on these markets and the company’s products are known to the public”, says Milo Borisov.
The manager responsible for the offering of the shares is “Sofia International Securities” and the announcement of the results from the subscription will be made on February 21.
The prospectus for the public offering of shares of Telematic Interactive Bulgaria was confirmed by the Financial Supervision Commission at the end of January. The capital of the Company is increased from BGN 4 million to 4.4 million via the issuing of 400 000 ordinary dematerialized shares with voting rights and a nominal value of BGN 1 each.
“Our long-term goal is to list the company on a European stock exchange and the first step in this direction is to go on the BSE in order to gain experience and a history as a public company. We believe that when going international this is an important factor for the success of the effort”, Borissov added.
Telematic Interactive Bulgaria is a licensed online gambling operator which is active on the Bulgarian market under the brand name Palms Bet and which offers online slot games, live casino, bingo and table games as well as sports betting.
The sole owner of the capital of the issuer is Eldorado Corporation AD, which directly, and through subsidiaries, operates gambling halls and casinos in Bulgaria and Kenya. The ultimate beneficial owners of the capital are Milo Borisov and his sister – Rosina Borisova.
Through its subsidiary, CT Interactive EOOD, the company offers slot games, a platform for online casino operators and online platforms in all jurisdictions where online betting is not prohibited by law. The company’s documents show that through its counterparties, CT Interactive games are represented in more than 100 countries on all continents.
According to data from the company’s prospectus, consolidated revenue for the 9 month period of last year amounted to BGN 54 million with a net profit of BGN 14.4 million. Revenues are expected to reach BGN 78 million for the whole of 2021 and a net profit of BGN 20 million at profitability rate of about 27%.
So far, Telematic Interactive Bulgaria generates its revenues entirely on the Bulgarian market but by the end of 2022 it is planning to start operations in Kenya, Peru and the Ukraine. Preparations for entering the Peruvian market are in their advanced stage and during the next 12 months the company`s plans include starting operations in the Ukraine. “Entering new markets will provide a growth potential securing, at the same time, the currently existing business with a solid base for development. In this sense, the investment in Telematic Interactive can be seen as a combination of investment in value and growth”, Borissov says.
The company`s dividend policy provisions the distribution of no less than 40% of the accumulated profit.
This will be the first offering of shares on the main Bulgarian Stock Exchange market for almost two years. In the mid 20s, Telelink Business Services Group offered existing investor shares and during that same year Eleven Capital made an initial public offering too.