Private Equity

Gevorkyan, a.s.

Description of investment

Founded in 1996, Gevorkyan is a European leader in the production of metal components using powder metallurgy. The company has unique know-how and a top-notch research and development department.

You come across GEVORKYAN products practically every day. Whether it's a door knob at home, the turn of a key in your car ignition or a dentist drilling a tooth, chances are the designers of these products have turned to GEVORKYAN to design solutions for the unique metal components inside everyday products.

Investment statusActive
Year of entry2016
Investment typeMezzanine loan
Webwww.gevorkyan.sk/cs

Why did we invest?

  • The sub-fund's team helped lead GEVORKYAN to an IPO on the START market of the Prague Stock Exchange in June 2022, which was the largest ever IPO in terms of value of shares subscribed and the first foreign IPO.
  • More than fifty years of experience of the Gevorkyan family are behind the technology center that produces tailor-made products for large multinational companies, which are part of GEVORKYAN's diversified portfolio of industries and technologies.
  • As a development supplier, GEVORKYAN develops the products directly with customers and participates in improving their design. This joint development is followed by mass production of the developed product over a period of several years. The complexity of the solutions, the long-term contracts and the experienced team are thus behind the high profitability and the assured growing sales in the future.
  • New customers turn to GEVORKYAN particularly during times of crisis, as the company’s technology enables more efficient and significantly lower-cost production while maintaining high quality. As a result, for the sub-fund VERSUTE Private Equity Fund Otevřený, the company represents an investment whose performance is accelerated by crisis conditions.
  • GEVORKYAN's technologies are virtually waste-free, using energy produced from renewable sources, making the entire production process energy-efficient, low-emission and resource-saving. The company thus meets even the strictest sustainability standards.

IPO

  • Versute Investments managed the IPO of GEVORKYAN, a.s., managing the largest IPO on the Prague Stock Exchange in 2022, the largest on the PX START market and the first IPO of a Slovak company in Prague.
  • Versute Investments managed to raise EUR 29,5 million from investors (727 million CZK).
  • The IPO of GEVORKYAN was the result of a long-term collaboration between GEVORKYAN and Versute Investments, and it also represented a partial exit of the investment for the sub-fund VERSUTE Private Equity Fund Otevřený. The investment included mezzanine debt provided in 2016, followed by the subsequent acquisition of an equity stake.
  • The long-term cooperation continued after the IPO, when Versute Investments secured other transactions: we helped the company in its transition to the PX Prime market, secured a dual listing on the Bratislava Stock Exchange and arranged a green bond issue, the first green bonds traded on the Prague Stock Exchange.