Sofia real estate investment company Infinity Capital plans to hold an initial public offering on the Bulgarian Stock Exchange to raise 1m euros or almost 2m leva. According to the company’s CEO Georgi Dimitrov to Bloomberg TV, the listing should was held for up to three months on the new BEAM market on the Bulgarian Stock Exchange.
“A few months ago, we contacted our partners from Elana and announced that we intend to explore the possibilities of BEAM,” Dimitrov said. “We are currently in the process of preparing documents for inclusion in this very good segment of the Bulgarian Stock Exchange.”
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The company is preparing for an IPO for BGN 1 million.
If the company’s initial public offering proves successful, it will increase its capital again next year.
Infinity Capital is a fund that invests in the real estate market, “specializing in strategic purchases and acquisitions of plots, with good returns, in all sectors of the real estate market in Bulgaria,” the company said. The business model is the construction of residential buildings on the acquired properties and their sale.
Currently, she has an active project in the village of Gurmazovo, located northwest of Sofia, called Gurmazovo House, consisting of 14 single-family houses above the middle price range. According to Georgiev, at the moment it is finalized at about 40%, and approximately 70% of the houses, or ten of them, have already been sold.
Part of the funds raised by BEAM will be used for the finalization of Gurmazovo House, and the construction of just over half of the houses will begin after the New Year. Another part of the funding will go to a similar project called Gurmazovo Hills, in the same village that is currently under construction.
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“We are focused on the segment of houses, because at the moment this is the market trend that we want to catch,” Dimitrov said. “Both of our projects are in the sector with single-family houses, and in the future we will invest in residential buildings in Sofia in the middle price segment. For now, we do not intend to invest in other segments.”
The reason why Infinity Capital, launched a year ago, is not listed on the main market is that the company is still not recognizable among investors, and such an endeavor is associated with huge administrative costs, which the company can not or does not want to afford, said its director. . In contrast, BEAM reduces administrative costs drastically and allows capital to be raised by a wide range of investors.
Dimitrov’s forecast is that the dividend that Infinity Capital will be able to give to its investors is well above the market average. The ambitions of the fund are to be over 15%.
According to him, because of the huge inflation, ie. printing money by central banks, market users will “thaw” their savings and invest them in the real estate market, which will dramatically increase its liquidity.