Agricover Holding SA ("Agricover" or the "Company", together with its subsidiaries, Agricover Distribution SA, Agricover Credit IFN SA and Agricover Technology SRL, the "Group"), a prominent player in the agribusiness market in Romania, announces its intention to conduct an Initial Public Offering (the "Offering"). The Offer will include a maximum of 145,436,236 new ordinary shares issued by the Company as part of a share capital increase, as well as up to 800,622,551 existing ordinary shares held by the Company's current shareholders, Mr. Jabbar Kanani and the Bank European Bank for Reconstruction and Development ("EBRD") (together the "Selling Shareholders"). The offer will take place after the approval of the offer prospectus ("Prospectus") by the Financial Supervisory Authority of Romania ("ASF"), according to a press release.

"Over two decades, Agricover has been a consistent supporter of farmers, offering them access to agricultural inputs, financing solutions and emerging digitalization, which promotes the practice of sustainable and responsible agriculture at the level of Romania. Our firm commitment to sound principles of corporate governance, pragmatic and prudent management, transparency and accountability has helped us become a prominent player in the Romanian agricultural sector. Despite facing unprecedented challenges in recent years, Agricover has consistently delivered improved financial results and increased its market share. As part of our sustainable development strategy and in line with our ambition to define tomorrow's agriculture, we are pleased to announce our intention to list Agricover on the Bucharest Stock Exchange. Building on the success of our €40 million 2021 bond issue, our goal is to continue to attract development capital and new investors to join us on our path to success," said Jabbar Kanani, President to the Board of Directors of Agricover Holding.

The offer will consist of a public offer addressed to retail and institutional investors in Romania and an offer intended for eligible investors outside Romania, in accordance with the provisions of the Prospectus. Following the approval of the Prospectus by the ASF and the successful conclusion of the Offer, Agricover intends to apply for admission to trading of the shares on the regulated market operated by the Bucharest Stock Exchange ("BVB"). WOOD & Company Financial Services, a.s. is acting as Sole Global Coordinator and Bookrunner for the Offer. S.S.I.F. TRADEVILLE S.A. acts as Retail Agent for the Offer.

The group was established in 2000 by local entrepreneur Mr. Jabbar Kanani. In 2017, the European Bank for Reconstruction and Development became a major institutional investor in Agricover Holding SA, which currently holds 12.727% of the Company's share capital. Also in 2018, Adama Agriculture BV became a significant strategic investor in Agricover Distribution SA, holding 10% of the subsidiary's share capital. With 22 years of experience in the industry and an entrepreneurial approach to business development, Agricover is today a group of companies serving the agribusiness sector in Romania, responding to the essential needs of farmers. Through its subsidiaries, the Group offers farmers an integrated range of agricultural inputs, financing and digital solutions aimed at increasing agricultural productivity, reducing operating costs, financing activity and growth and developing efficient and sustainable agricultural business models.

The group has two main business segments: the distribution of agricultural inputs, carried out by Agricover Distribution SA ("Agribusiness") and specialized financing for farmers, provided by a non-banking financial institution, Agricover Credit IFN SA ("Agrifinance"). The two segments together generate the majority of the Group's revenues and operating results.

In 2021, the Group expanded its service portfolio by launching a "one-stop-shop" digital platform called Crop360, operated by Agricover Technology SRL. This platform offers farmers the latest digital innovations in global agriculture, as well as the integration of online sales and banking interactions with the Group's customers. Through Crop360, the Group provides an easy experience to all its customers, simplifying the process of accessing the necessary agricultural inputs and financial resources, while leveraging technology to drive growth and sustainability.

Agricover recorded revenues of approximately 2.55 billion lei in 2022, an increase of approximately 50% compared to 2021, and a consolidated net profit of approximately 91.3 million lei, an increase of approximately 7% compared to 2021. In 2022, Agricover continued to expand its customer portfolio, providing agricultural inputs and financing to 9,949 customers, approximately one-third of whom benefited from products and/or services provided by both Agricover Distribution and Agricover Credit.

At the Agricover Credit level, the gross accounting value of loans and advances granted to customers on December 31, 2022 reached approximately 2.84 billion lei, an increase of approximately 42% compared to the end of 2021. The rate of non-performing loans continued to be below average sector, being 2.9% on December 31, 2022, compared to the agricultural sector average of 3.1% on September 30, 2022[4].

The group continued to invest in 2022 in the automation of business processes and the digital future of agriculture. Since its launch in November 2021, the Crop360 platform has been deployed on more than 3,000 farms to date. The platform represents a key investment made by the Group in the field of research and innovation to support Romanian farmers to become more competitive and skilled, especially in the context of accelerated transformations taking place in the agricultural sector globally.

The group had, on December 31, 2022, 510 permanent employees and a total number of 518 employees, including agency, temporary and trainee employees.