In the name of organic growth: Smart Organic popped up on the BSE main market

The largest Bulgarian producer of organic foods and snacks, Smart Organic, is the first company on the Bulgarian Stock Exchange (BSE) to successfully leap from beam, the BSE growth market to its main market.

The company founded by Yani Dragov is the second to be listed on the Standard segment of the Bulgarian capital market since the beginning of the year, after the producer of metal packaging - Bulmetal.

The company will increase its capital by offering up to 1,031,000 new, ordinary, registered, dematerialized shares with a nominal value of BGN 1 and an issue value of BGN 19 each. The company is seeking nearly 10 million euros from investors. The company's books start trading on the main market on May 23.

This is the first representative of the organic food sector in the Bulgarian capital market. Smart Organic became part of the beam market at the end of 2021 when the segment for smaller companies looking for alternative financing was still in its infancy. In its IPO, the company then raised nearly 3 million euros, with the issue being oversubscribed almost twice.

In the past year, its shares rose in price by over 58%, and the market capitalization reached almost BGN 205.2 million (102.6 million euros).

With its leap from the small to the large market segment of the Bulgarian Stock Exchange, Smart Organic aims to raise capital to expand its production capacity as it continues to grow. The company indicated that the current production capacity is insufficient to accommodate its work.

The additional funds will be used for the completion of the company's new factory near Sofia - in Bozhurishte. It is expected that the new plant will enter into operation in the middle of 2024, and according to the company, these processes are going according to schedule. The production facilities are designed and executed to carry out an energy-efficient, environmentally friendly production process.

More new production facilities are planned in the future in order to increase capacity.

If there is a suitable opportunity, the funds can also be used to acquire existing local and international companies operating in the organic food and beverage production sector," the company states.

In recent years, Smart Organic has acquired several of its competitors in Bulgaria and abroad.

In its IPO prospectus for its listing on the main segment of the BSE, the company described the organic food market as highly competitive, in which multiple brands and products compete for limited retail and wholesale sales to clients, including supermarkets, wholesalers, restaurants and hotels.

Smart Organic produces, distributes and packages organic foods in Bulgaria and abroad. The most famous of its brands are Roo'bar, Dragon Superfoods and Bett'r. The company also uses its industrial capacity to produce clients’ own brands. One of its main clients is the German chain Lidl, which contributes to about 10% of the revenues of the Bulgarian manufacturer. Smart Organic is also a distributor and exclusive representative of leading organic food brands from the country and abroad. The group also has its own chain of organic stores in Bulgaria.

Translated by Tzvetozar Vincent Iolov