Clinicile Dentare Dr. Leahu, a private dental network with nine clinics in Bucharest, Pitești, Timișoara and Turda, has successfully closed a private placement to raise RON 10 million, one of the largest RON-denominated bond issues on the AeRO market. The bonds will be listed on the alternative trading system of the Bucharest Stock Exchange.

The transaction was arranged by BT Capital Partners, a Banca Transilvania Financial Group company, acting as intermediary and Authorized Advisor.

As part of the private placement, the company offered 100,000 bonds with a nominal value of RON 100, carrying a 7.5% coupon payable quarterly, the lowest to date for similar bonds listed on the AeRO market. The placement, initially scheduled to close on November 1, was closed early following oversubscription, with allocations made pro rata. More than 60 investors took part in the placement, both individuals and institutional investors.

“We would like to thank all investors for their strong interest in our offer. We are extremely excited to have successfully closed the placement and see the market’s support as a vote of confidence in our team and our growth plans. After an adventure that began nine years ago, we are ready to take Romania’s dental services industry to the next level, alongside the other industries already present on the Bucharest Stock Exchange.” said Ionuț Leahu, founder and CEO of the Clinicile Dentare Dr. Leahu network.

“We are honored to support the development of a fast‑growing entrepreneurial business such as the Clinicile Dentare Dr. Leahu network, a company with significant potential to drive consolidation in the local dentistry market. The strong interest we saw for this offer shows that investors on the local capital market are increasingly well informed and attentive to such investments, and can provide a real alternative for companies seeking funding sources complementary to bank financing. The successful completion of this transaction confirms BT Capital Partners’ mission to provide local companies with tailored assistance in any type of fundraising process, whether public, via the stock exchange, or private, through mergers and acquisitions.” said Daniela Secară, CEO of BT Capital Partners.

The next step is to prepare the documents required for the admission of the bonds to trading on the AeRO market of the Bucharest Stock Exchange. The Clinicile Dentare Dr. Leahu network aims for the first trading day to take place within one month, under the ticker DRL22. The company will be the first business from the dental services sector to come to the Bucharest Stock Exchange, and the first healthcare company on the AeRO market.

In 2018, the Clinicile Dentare Dr. Leahu network reported consolidated revenue of approximately RON 29.7 million, up 70% versus 2017, and net profit of RON 2.6 million. For 2019, according to the information presented in the offer document, the company estimates revenue of RON 48.4 million and net profit of RON 5 million.

The RON 10 million raised will be used to finance the company’s accelerated growth strategy, in particular the acquisition of a clinic in Western Europe. The unit will already be operational, generating revenue from the moment of acquisition, and will help increase the number of foreign clients seeking treatment at the company’s clinics in Romania through dental tourism.

About Clinicile Dentare Dr. Leahu

The Clinicile Dentare Dr. Leahu network is a private dentistry network with six clinics in Bucharest and one each in Pitești, Timișoara and Turda, equipped with state‑of‑the‑art technology and staffed by medical teams trained to the highest standards. The Dr. Leahu Space Academy, a EUR 1.25 million investment, is the newest dental center dedicated exclusively to children and teenagers, a space built around a futuristic concept focused on the digital experience: gamification, digital projections, online games on tablets, and a special rewards system. The clinic offers eight surgeries, four recovery rooms for procedures under general anesthesia, and a digital dental radiology center, as well as medical teams specialized in treating patients with autism and other conditions.

About BT Capital Partners

BT Capital Partners, the largest retail broker on Romania’s capital market, is the exclusive member in Romania of the Oaklins international M&A alliance. BT Capital Partners provides brokerage services on the local and international capital markets, assistance in raising capital through bond and equity issues, and financial advisory services in the mergers and acquisitions market.