Magnetic MRO bonds offering raises €8 million to support its growth plans

The Baltic technical care company plans to use raised funds to acquire an unnamed competitor (Magnetic MRO)

Estonia-based and China-owned maintenance repair and overhaul (MRO) services specialist Magnetic MRO has raised €8 million through a placement of bonds, which it plans to use to acquire an unnamed competitor.

Magnetic MRO announced the bond trading on the Nasdaq Baltic First North bond market in mid February. The company carried through a private placement of unsecured bonds and in doing so aggregated €8 million to support its growth plans, including “financing a strategic acquisition”, according to a statement. 70 investors from the Baltic states of Estonia, Latvia and Lithuania subscribed to the bonds sale.

“At the beginning of 2018, Hangxin, an international aircraft components maintenance company, which is listed on the Shanghai stock exchange, acquired the shares of Magnetic MRO. This basically means that we have been following the rules of a publicly-listed company for almost a year,” says Risto Mäeots, the chief executive of Magnetic MRO. “Therefore, listing our shares on the First North market does not mean we have to change our internal processes, but instead allows Baltic investors to invest in our growth story. We were really happy to see that our bonds were subscribed by investors all across the Baltics and in addition to investment funds and banks, they also included retail investors.”

Redgate Capital is the certified adviser for the company on First North and Andrei Zaborski, a partner at Redgate, says that the Magnetic MRO bond listing on First North is great news for local and regional investors. “Magnetic MRO is a strong company with an attractive growth story, operating in a very interesting and high value-adding global sector,” Zaborski insists.

Magnetic MRO (formerly Air Maintenance Estonia) was acquired by China’s Guangzhou Hangxin Aviation Technology in early 2018.