Romanian fuel distribution company JT Grup Oil plans Bucharest IPO

Romanian independent fuel distribution company JT Grup Oil has announced plans to carry out a public offering (IPO) followed by the listing of its shares on the Bucharest Stock Exchange (BVB), reported Ziarul Financiar, quoting the company's CEO Jean Paul Tucan.

The IPO announcement comes after Premier Energy announced a similar step, by which it envisages raising €25mn. 

The shares of JT Grup Oil would be listed on the alternative AeRO market of the stock exchange.

It plans to issue 10mn new shares worth €12mn and accounting for 28.5% of its capital. 

The company, an independent fuel distribution company in Romania, recently completed the first stage of a planned €25mn terminal for oil products in Constanta port.

The company’s turnover dropped by one quarter to €45mn in 2023 from €60mn in 2022, while the net profit edged down marginally to €1.15mn from €1.27mn.

"JT Terminal will be the most modern liquid petroleum products terminal in the Black Sea offering storage and handling space for specific products such as diesel, biodiesel, bitumen, and other liquid products with the final purpose of distributing them on the domestic and international fuel markets,” said Tucan, the majority shareholder and CEP of JT Grup Oil, announcing the oil terminal investment in March.

The company completed the infrastructure works with the help of a €11mn grant under the EU’s Large Infrastructure Operational Programme (LIOP).

"The company's shareholders decided to increase the share capital by issuing 10mn shares, with a nominal value of RON1, which will be made available to the public through an initial public offer, followed by admission to trading of the company's shares on the Multilateral Trading System, on the AeRO market of the BVB,” Tucan told Ziarul Financiar.

"Through this operation of attracting capital from investors, we want to give the public 28.5% of the company's share capital,” Tucan also said.

After the capital increase and listing, the company’s capitalisation would increase by €12mn, to €14mn, the daily reported. 

JT Grup Oil, founded in 2001, carries out fuel distribution operations in the southeast area of Romania with the help of its fleet of 11 tankers with a capacity of up to 40,000 litres, equipped with pumps and indicators for measuring the delivered quantity. For fuel distribution in the northern part of the country, the company has partnerships with long-term collaborators.

In 2004-2005, the company built a bitumen terminal in Medgidia, which it sold shortly after acceptance, and the money obtained from the sale was invested in the development of the fuel distribution network. In 2008, it started developing the distribution network and introduced over 250 tanks equipped with pumps and level indicators to the market. 

Since 2023, JT Grup Oil has diversified its product range and entered the excise-free diesel segment, which serves commercial vessels for the Midia and Constanta ports.