JT Grup Oil attracted subscriptions worth 23 million lei from investors in the first five discount days

With consolidated annual revenues of €224 million and a net profit of almost €5.8 million in 2023, JT Grup Oil, one of the most important private companies in the fuel distribution market and the only shareholder of JT Terminal, the newest private fuel products terminal in the Constanta port, attracted subscriptions of 23 million lei during the first five discount days of the Offer Period.

The market operation started on 28 May and is scheduled to close on 10 June, following which the company will be listed on the AeRO Market of the Bucharest Stock Exchange. In the first five days after the opening, investors have launched orders for 3,556,000 JT Grup Oil shares. Starting today, 4 June, investors will subscribe shares at the offer price of 6.50 lei/share.

Thanks to the facilities available at the terminal, JT Grup Oil S.A. has excellent prospects for business development through strategic partnerships with the most important companies in the industry at European level, which have already expressed their intentions in this direction. Thus, according to the prospectus approved by the ASF, and as a result of the development of the newest multi-modal terminal, JT Grup Oil estimates for the next year, a significant increase in turnover, from approximately 333 million lei estimated by the end of 2024, to approximately 663 million lei in 2025.

“The listing on the BVB is an opportunity for us to be part of a success story, and for investors it is a good time to buy shares in a company with an excellent reputation and significant growth prospects. JT Grup Oil S.A. has established itself as a reliable player in the energy industry, constantly innovating and adapting quickly to market changes. According to our forecasts, future earnings will be higher than investments, and once the terminal is operational, along with reduced expenses due to its full automation, we expect profitability to grow exponentially in the 2025-2028 period.”, says Bogdan Aldea, Chairman of the Board of Directors and CEO of JT Grup Oil S.A.

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With an ambitious business plan and thanks to the development of JT Terminal, the Group aims to open new distribution points for the B2B sector and thus increase the volumes of fuel traded on the local market. The investment in JT Terminal provides all the necessary infrastructure to achieve the proposed objectives, from increasing operational efficiency, reducing costs and reducing waiting times, to improving the services offered to the company’s partners and customers. The amount of money received from the financing through the IPO will remain in the company and will be used to expand storage and distribution capacity and to implement new facilities in the north and west of the country.

Once completed, the terminal will have 8 tanks with a total storage capacity of 31,500 tonnes and will handle barges of up to 9,000 tonnes, 16 wagons at the same time on two parallel rail lines, and 20 tankers simultaneously in the loading and unloading area. Once fully operational, thanks to its storage capacity, JT Terminal will be able to supply around 1 million tonnes per year of the fuel shortage on the Romanian market, currently estimated at 2.5 million tonnes per year. In addition, the distribution capacity of 400,000 litres/day will ensure a permanent rotation of stocks, without allowing a large amount of fuel to accumulate, thus reducing the financial risk. In addition, the development of the vehicle park and the increase in the number of SKID stations from 250 to around 500 will help to increase the volumes traded and consequently increase market share.

“Since the first day of the IPO launch, we have been delighted with the positive response from investors. The massive share subscription in the first five days confirms the confidence investors have in our business. With the support of our trusted partners and with the help of our team of professionals, we are confident that we will continue to achieve the desired success and reach all the goals set for the medium and long term. JT Terminal is a strategic project that will grow in the next and that will generate a multiplication of turnover to about 3 billion lei in the next 10 years. All our estimates, based on figures and market analysis, indicate a growing demand for fuel distribution and storage services. Given current trends and economic projections, we anticipate a significant expansion of our network and improved operational efficiency.”, adds Steluta Lebidov, CFO of JT Grup Oil

JT Terminal is a private investment of 25 million euros, validated also by the Romanian State through non-refundable funds allocated through the Management Authority for the Large Infrastructure Operational Programme, within the Ministry of Investments and European Projects.

In addition to developing its own terminal, JT Grup Oil ensures efficient and safe supply of fuels by implementing on-site stations equipped with modern monitoring and control technologies, which allow for efficient stock and operations management and are designed and built in accordance with the highest quality and safety standards. In addition, out of a desire to integrate renewable energy sources and promote sustainable practices in the energy industry, JT Grup Oil will install photovoltaic panels on self-service filling stations.

Through its dividend policy, the Group aims to achieve a balanced distribution of net income in line with shareholders’ expectations and the company’s development needs. Distribution of shares will be made in order of subscription. The intermediaries through which the shares may be subscribed for in the Initial Public Offering of shares of the issuer J.T. GRUP OIL are: PRIME TRANSACTION SA, BRD-GSG SA, IFB FINWEST SA, SWISS CAPITAL SA, BANCA COMERCIALA ROMANA SA, BRK FINANCIAL GRUP SA, ESTINVEST SA, MUNTENIA GLOBAL INVEST SA, INTERFINBROK CORPORATION SA, TRADEVILLE SA, BT CAPITAL PARTNERS SA, INVESTIMENTAL SA, GOLDRING SA, ALPHA BANK ROMANIA SA, INTERDEALER CAPITAL INVEST SA.