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Slovak energy firm to start EUR 45mn IPO on Polish market on Feb 7

January 29, 2014

The initial public offering of Slovak energy company GGE a.s. is due to kick off on Feb 7 when book-building is scheduled to begin (and will last till Feb 10 ). The company plans to offer up to 5mn new issue shares, constituting one-third of its increased capital. The maximum price in the IPO has been set at PLN 38, which implies the IPO's maximum value at PLN 190mn ( EUR 45mn ). The company plans to debut on the Warsaw Stock Exchange (WSE) by Mar 21 . a total of 15% of the shares on offer will be earmarked for retail investors. Net proceeds is estimated at maximum of PLN 181.5mn. GGE said in its issue prospectus that it intends to use the net proceeds to acquire and finance new projects in accordance with the Groups development strategy. The acquisition of these projects will enable further growth of the Group. It plans four projects in Slovakia with a total equity investment estimated at EUR 10.0mn ; three new projects in the Czech Republic with a total investment of EUR 12.5mn ; investments in other CEE markets: Serbia , Poland , Ukraine and Hungary , with a total investment of EUR 21.0mn . The rest of necessary capital will be covered by own sources. If the capital earned from the issue is lower than expected, in the first place the company plans to increase share of cash from ongoing business operations. In 2012, GGE posted net profit of EUR 5.4mn , with EBITDA profit of EUR 16.4mn on sales of EUR 109.3mn .

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Source: IntelliNews - Weekly Reports

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