A CCB analysis projects Zarneni Hrani fair price per share to be between 4.94 and 9 leva.

CCB, which is the issue’s underwriter, presented a report based on the holding’s 2008-2012 business plan and on established price evaluation methods (such as discount dividend, comparisons with other recent public offerings etc.).

According to PEG ratio, the minimum fair price is 4.61 leva and the maximum is 9.29 leva.

CCB used the IPO of Ukrainian Kernel Holding for comparison, according to which the fair price per share for the Bulgarian company should be between 4.94 and 8.15 leva.

The table below shows the holding’s financial expectations for the 2008 – 2012 period.

On November 30 the Financial Supervision Commission approved Zarneni Hrani Bulgaria’s prospectus for a public offering of up to 42.696 mln shares, and floating of up to 170.786 mln shares with a face value of 1 lev, representing the holding’s registered capital on BSE.

At a press conference held November 19, CCB said the price range will be officially announced on December 5 (tomorrow).

The book building period will be between December 10 and 14. Orders in conditions of international private placement will be accepted between December 10 and 14, and in condition of public offering between Decmber 12 and 14.

The price per share and shares allotment will be announced December 15. Secondary trade is expected to start December 17.

Zarneni Hrani Bulgaria operates on the market of grain and oil-bearing plants, its core activity also includes production of vegetable oils. The company is in the process of construction of a biodiesel installation.

Chimimport is main shareholder, controlling 53.96% of the capital directly, and a total of 66% together with the indirectly held shares (via CCB Sila, Saglasie CCB) etc.

The holding has a two-level management structure. Members of the Supervisory Board are Chimimport, CCB Group Asset Management, and Finance Consulting. The Management Board includes Liubomir Chakarov, Rayna Kuzmova, Georgi Kostov, Chavdar Trifonov, Hristo Chirakov.

Georgi Kostov and Chavdar Trifonov are CEOs.

Thousand BGN2008E2009E2010E2011E2012EVolume (thousand tonnes)44871993910581217Sales285733446365597693693360756800Costs on sales257806406758545865624837673151Profit from core activity2792639607518286852383649Proft from core activity/Sales9.80%8.90%8.70%9.90%11.10%Financial Costs27383829317039234529Amortization10251025126515051505Pre-tax Profit2416334753473936309577615Net profit2174631278426535678569853