Primary Owner Supports AutoWallis Growth With Capital Increase of HUF 5.7 bln
The primary owner is supporting AutoWallis’s plans for international growth with a capital increase of HUF 5.7 billion, strengthening the capital position and balance sheet structure of the regional car sales and mobility service provider, according to a press release sent to the Budapest Business Journal.
As part of the current capital increase, Wallis Tőkeholding is acquiring 46,416,938 shares at the average stock exchange rate of the past 30 days, equal to HUF 122.8, for which it provides a 12-month lock up.
Regarding the step, Zsolt Müllner, chairman of the board of AutoWallis, explained that the fresh capital raised by way of the cash capital increase will continue to improve AutoWallis’s already strong balance sheet structure, which means the company will implement even more dynamic international and regional growth in the coming years. He also added that the company closed its fifth record year in 2023, successfully implementing its intensive growth strategy since it was listed in 2019; to do so, it uses funds from the capital market while increasingly relying on the profits generated by the company.
AutoWallis achieved an EBITDA of HUF 14.5 bln in 2022 with a revenue of HUF 270 bln, which figures it already surpassed in the first three quarters of 2023 with an EBITDA of HUF 17.5 bln and revenue of HUF 283 bln, almost 60% of which was generated abroad.
Regarding the capital increase, AutoWallis CEO Gábor Ormosy pointed out that the group’s expansion in the past years was based on several value-adding transactions while even its organic growth surpassed industry trends, showing that the company is on a stable path of growth. The capital to be injected now ensures additional funds that enable AutoWallis’s Retail & Services Business Unit to increase its international expansion while the Distribution Business Unit starts providing representation for new Asian brands in addition to developing the existing ones, allowing the company to continue to react quickly to market consolidation and to quickly and effectively implement acquisitions.
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