Telelink Business Services Group Debuts on Bulgarian Stock Exchange on June 8

Bulgarian system integrator Telelink Business Services Group AD (TBS Group) will float its shares on the Bulgarian Stock Exchange (BSE) on June 8, 2020.

The company will offer 7% of its stock at a minimum price of 7.60 Bulgarian levs per share. The offering is managed by Elana Trading AD.

With this step TBS Group fulfills its plan from the beginning of 2020 to offer a limited percentage of its stock at a fixed attractive price and give more investors the chance to subscribe for shares. TBS Group believes that the move will provide the possibility to a larger number of interested parties to get to know the company from the position of shareholders before the main offering which is scheduled for the second half of September 2020.

The Procedure

The company keeps its initial plans to sell up to 30% of its capital in two tranches during 2020 – in June and September. The parameters remain unchanged: a minimum price of 7.60 levs per share for Tranche 1, starting on June 8, and a Tranche 2 price equal to 8.5 times the EBITDA until June 2020, in September. Tranche 1 will continue for 10 working days until June 19, under the updated Offering Procedure dated June 1, 2020.

“The company and its shareholders believe that the road to becoming public, which was started in the autumn of 2019, is the right one for its long-term development. Our business model relies on complex and long-term contract relationships, which softens the effect of sharp business climate changes like the emergency circumstances related to COVID-19. We believe that the past few months will make our products and services even more attractive on the market and will give us the opportunity to overcome the current situation with an even bigger potential in the long term,” said TBS Group CEO Ivan Zhitiyanov.

The investors’ interest in the company, including foreign investors, before and after the pandemic, remains strong while the technology sectors becomes even more attractive to them in the new economic reality.

The split of the offering in two tranches is aimed at giving an opportunity to a broader circle of investors to buy shares in the company at an earlier stage, which will allow them to witness the company’s potential, and expand their holdings during the bigger second tranche. The emergency situation related to the COVID-19 pandemic did not allow for a longer period between the tranches, but it is still long enough for investors and shareholders to become convinced in the current and long-term potential of the company.

“I believe that the unchanged minimum price still provides an adequate discount to investors, based on our strong results for the period ending March 31, 2020 and on the average prices of technology stocks around the world before and after COVID-19. This is additionally supported by our unchanged expectations for an interim dividend of 4 million levs in 2020,” Zhitiyanov added.

The Results

According to the Group’s Q1 2020 results and 2019 audited annual results, published last week, the consolidated revenue grew considerably on an annual basis, reaching 127.1 million levs for the period April 2019 – March 2020, which is 15% up from compared to the calendar year 2019. The net profit for the same period totaled 11.4 million levs, which is up 40% compared to the calendar year 2019.

For the first quarter of this year alone, the revenue was 36.7 million levs, up 84% from the same period of 2019. The main contributor to the increase was the 118% growth on the Bulgarian market where TBS Group had won a broader range of projects in all sectors, accompanied by regular revenue from multi-national customers. Sales rose by 43% Serbia, Montenegro, Bosnia and Herzegovina, and Slovenia where the company accelerated its deliveries to traditional clients from the telecom sector. The consolidated revenue growth was also supported by revenue coming from Macedonia and Albania, where TBS Group started sales operations in 2019.

Buyback

In addition, as part of the Group’s key plans to incentivize its employees through stock options, the company’s management will offer to its shareholders a share buyback program to run until end-2020 at a price range of 7.40 – 11.00 levs per share. The proposal will be voted at an extraordinary general shareholders’ meeting scheduled for June 30.

Information about the company

For further questions, please contact us at: marcomms@tbs.tech

About Telelink Business Services Group AD

Telelink Business Services Group AD (TBS Group) was set up in 2019 after the System Integration unit spun off from Telelink Holding. TBS focuses on seven technology streams, providing a holistic approach to IT challenges. The company has over 200 employees, sales offices in seven countries and more than 200 enterprise and SMB customers from different sectors. TBS has a broad network of partnerships with global technology leaders like Cisco, Microsoft, IBM, DellEMC, VMware, etc. The company’s mission is to simplify the complex and enable businesses to do great things by utilizing technology.