The prospectus for initial public offering of an emission issued by Kaolin AD in the capital increase of the company was approved at today’s meeting of the Financial Supervision Commission.

The emission’s volume is 5 mln shares of a face value of 1.00 leva and emission price of 12.50 leva, the institution’s website announced today.

The company’s main objectives for the following years are to increase the production capacity in the production of kaolin, silica sand, construction materials, and to increase its range of products based on industrial minerals which are mainly used in the sectors of construction, chemical industry, ceramics etc.

In 2006 Kaolin’s revenues reached 90.163 mln leva increasing 28.1% against 2005. Between 2004 and 2006 sales grew at an average annual rate of 23.9%.

For the fiscal year 2007 Kaolin AD expects to keep the growth rate of its revenues registered in the past couple of years (20-30% annually).

Last year Kaolin posted a net profit of 9.432 mln leva compared with 7.25 mln leva in 2005.

Kaolin AD-Ruse invested 20 mln leva in 2006, the management report and registration document of the company filed in BSE-Sofia show.

Kaolin AD holds 100% from the capital of Ceramic Materials EOOD, Ustrem 2001 AD, BRP Invest AD, Yugo Kaolin (Serba), Kaolin Azov (Ukraine), Kaolin Mineral (Romania) and respectively 93% from the capital of Promineral (Ukraine), Ogneuporni Glini AD and 84.79% from the capital of Magma 97 AD.

Shareholders in Kaolin AD are Alfa Finance Holding AD and Mouve Clover Ltd., UK, holding 85.98% and 12.50% of its capital respectively.