On June 3, 2020 Selvita S.A. [ticker: WSE: SLV] – one of the largest preclinical contract research organizations in Europe, reported thhat it successfully allotted 2.38 million of C series shares, raising EUR 20.6 million from investors (Press release, Selvita, JUN 3, 2020, View Source [SID1234560808]). It is the second largest transaction in terms of capital raised, on the Warsaw Stock Exchange this year.
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As part of the Follow-On public offering of shares, investors could buy up to 2.38 million shares of the new C series, which constitutes about 15 percent of the current Company’s share capital. The issue price of the shares was set at PLN 38,00. The company has achieved in full its intended goal regarding capital raise that was presented in the strategy published together with the announcement of the shareholders’ meeting.
"The success of this share issue demonstrates investors’ confidence in both Selvita and the development strategy we have announced, as well as their trust in the large potential of the Company’s business. I would like to express my gratitude for the participation in the share issue, as well as supporting our strategic plans. Rest assured, that we will make every effort to execute the assumptions of our strategy and continue Selvita’s dynamic growth on the global preclinical CRO market," comments Bogusław Sieczkowski, co-founder and Chief Executive Officer at Selvita.
The capital raised will allow the Company to execute the development strategy adopted by the Company for the upcoming years which assumes that in 2023 the Company will be able to achieve over EUR 70 million in revenues at a stable EBITDA margin and as a consequence reach a market cap of over EUR 230 million. The proceeds from the share issue will be used mostly on acquisitions of selected European CROs (app. 16 million EUR), and the reminder of the proceeds will be devoted to further organic growth of Selvita.
Selvita is interested in companies which will either complement the current Selvita offering, or will allow for the expansion of its scale of operations. In terms of the qualitative criteria for choosing the acquisition target, Selvita will favor entities supplementing their portfolio of services in the area of drug discovery or regulatory studies. By the end of 2023, the Company intends to execute three acquisitions, with the first one taking place this year.
Over the next three years, the Company plans to invest EUR 35-50 million in the acquisitions.
As a key element supporting further organic growth, Selvita strategy includes establishment of the Selvita Research Center, with a research space of 4,000 m2. With the completion of the new Center, Selvita will have in aggregate 10,000 m2 of research space available. Own laboratories and strengthening the scientific staff, will allow Selvita to increase its scale of business, expand its offer and launch innovative new services. Initiation of the investment is planned for next year and expected to be finalized at the turn of 2022 and 2023.
IPOPEMA Securities S.A. acted as the global coordinator and bookrunner, and Chabasiewicz Kowalska & Partners law firm acted as the legal advisor.