Bittnet as the first company in history to change quote market on the Romanian Stock Exchange

The first portfolio investment of Carpathia Capital in Romania – Bittenet, will make its mark on the history of the Romanian capital market. It will be the first to move from the alternative AeRO market to the main market of the BVB Bucharest exchange. INC SA was responsible for the introduction of Bittnet shares to the AeRO market in 2015. Since then, the company has increased its capitalization 20 times from RON 7.9 million to approximately RON 158 million and significantly improved its financial results.

Bittnet is a Romanian company that at the beginning focused on delivering e-learning solutions and IT trainings. Currently, it is already an extensive capital group. As a result, Bittnet has gained a leading position in the e-learning segment. From the moment of starting cooperation with the INC Group, the company began to develop dynamically. In the last 5 years, it has increased revenues from RON 8.2 million (approx. PLN 7.5 million) to RON 99.8 million (approx. PLN 91.3 million) and operating profit from RON 582 thousand (approx. PLN 533 thousand) to RON 4.6 million (approx. PLN 4.2 million).

In 2015, Carpathia Capital SA subscribed for the entire IPO of the company on the AeRO market. Additionally, INC took up a several percent block of shares at the nominal price as part of the remuneration. The total investments of the INC Group in Bittnet amounted to approx. PLN 1 million, bringing today approx. 480% profit.

We co-created the Romanian stock market AeRO, which, like the Polish NewConnect, is dedicated to small and medium-sized companies from the new economy sector. The first debutant on the AeRO market was a fund from our Carpathia Capital group. Soon after, in 2015, we introduced Bittnet to trading on this market, and Carpathia Capital took over the entire issue of shares in the IPO. We are very pleased with the investment. First of all, we achieved a very high rate of return, and additionally we gained recognition and a very good reputation on the Romanian market – comments Paweł Śliwiński, Chairman of the Board of INC.

Carpathia Capital has so far invested in three entities in Romania. The investment in Bittnet gave the most spectacular results, and the fund – despite the sale of shares for a total of PLN 4.2 million – still has a block of shares in this company, valued yesterday at about PLN 1 million.

At the end of March, the INC Group signed a letter of intent with Movie Games, which aims to cooperate on the Romanian market. The plan is to support Romanian game producers by creating a gaming group that will consolidate the local market. It will offer financial and substantive support to independent studios in order to promote the Romanian market and select its leaders.