On July 9th, the shareholders of Bittnet Group (BNET), an AeRO listed company and the first ever IT issuer quoted on the Bucharest Stock Exchange, receive, for the fourth consecutive year, dividends in the form of free stocks. During the process, the company distributes the accrued profits from 2018, in the amount of RON 5 523 320.50 under the allocation ration of 1:1, meaning that 1 free share is awarded for each BNET share held by the investors. During the process, 55.233.205 new shares with nominal value of RON 0.1 per share were issued.
Bittnet Group has established a stable dividend policy. Since listing on the AeRO market of the Bucharest Stock Exchange in 2015, the company has followed a patented model, of distributing to its shareholders the accrued profits in the form of free shares. In total, since listing in April 2015, Bittnet has managed to increase its share capital with almost 10 million lei through these operations alone. The company plans to maintain the same dividend policy for the coming years, including after the transfer to the Main Market of the Bucharest Stock Exchange.
“We believe that the model that we have followed, of distributing the profits in the form of dividends, is a win-win situation for all. On one hand, the investors are well rewarded for their investment in Bittnet, while, on the other hand, the company gains capital for furthering its development plans. We aim to maintain the same policy for the coming years, including after the transfer to the Main Market of the Bucharest Stock Exchange at the end of this year” said Mihai Logofatu, CEO at Bittnet Group.
Since the beginning of this year, BNET shares were the most traded stock on the BVB’s AeRO market, both in terms of value traded as well as number of trades executed as stocks worth approximately 28,5 million lei changed their shareholders in estimated 8,000 trades. Taking into consideration the closing price from July 5th, year-to-date, Bittnet shares managed to increase their value by more than 200% (calculations based on the rebased price). Since listing on the AeRO market in April 2015, BNET’s market capitalization increased almost thirteenfold (1273%).
“BNET shares have benefitted from the increased activity of the investors in the first half of this year. In the whole year 2018, there were 3,500 transactions with BNET shares while today, at the beginning of July 2019 we are close to reaching the number of 8,000 transactions executed with Bittnet shares. We consider this significant growth as a sign of both interest as well as trust accorded by the investors, who believe in our vision and strategy for further developing Bittnet Group. Pleased with the investors’ reception, we continue to work on consolidating and strengthening of our market position on the local and external markets and we thank all shareholders for being part of our story” said Cristian Logofatu, CFO at Bittnet Group.
Bittnet was founded in 2007 by brothers Mihai and Cristian Logofatu and was initially focused on delivering IT trainings but after few years, introduced the IT&C integration division. The company listed on Bucharest Stock Exchange’s AeRO market for start-ups and SMEs in April 2015, following an infusion of capital from Polish pre-IPO fund, Carpathia Capital. Today, Bittnet is a Group of companies focused on two main domains of activity: technology and technology education, and it includes the following brands: Bittnet Training, Dendrio, Equatorial, Elian Solutions as well as Credis Academy. In October 2018, Bittnet Group has announced its intention to transfer to the Main Market of the Bucharest Stock Exchange, a decision which has been approved by the General Shareholders Meeting from December 2018.
Following the today’s increase, Bittnet Group’s share capital is divided into 110,466,410 nominative, common, dematerialized shares with a nominal value of RON 0.1 each.