One of the first IPOs on BSE in 2008 will be that of Mekom Jsc. According to latest data, the initial public offering of up to 10,682,800 shares of the company at a minimum price of 2.2 leva (no maximum price) will take place in the second half of January. The underwriter UBB and the co-underwriter CB Allianz Bulgaria are yet to announce the exact date.
The capital increase will be rendered successful if at least 10 mln shares are subscribed and paid. In case all shares are placed (10,682,800 new shares) the company will raise a minimum of 23.462 mln leva (11.995 mln euros). As a result, Mekom's free-float will reach 20% of the current registered capital (53.414 mln leva, 27.310 mln euros).
According to the IPO prospectus, the bourse debut aims at raising finances from external sources in order to fund the company's development strategy, as well as diversification of the shareholders' structure via attraction of foreign and local investors.
Between 2001 and 2006 the company invested nearly 34 mln leva in land, buildings, machines and equipment. This year Mekom has invested less than 100,000 leva in maintenance and repairs, the more imortant projects will be executed after the company raises capital on the stock exchange.
Mekom's investment progran for the next two years requires some 22 mln leva (11.248 mln euros). More details are given in the follwoing chart:
|Investment||Cost in BGN||Deadline|
|Enhancing meat processing capacities||4 mln||2008|
|Marketing and distribution – Bulgaria||2 mln||2008-2009|
|Expansion to Romanian market||5 mln||2008-2009|
|Acquisition of enetrprises in western Balkans||7 mln||2008|
|Investments in organizational improvements||10 mln||2008 – 2009|
Source: Mekom Jsc
Mekom's group controls 12 subsidiaries. These are Agrospecter Invest Jsc (99%), Dobrudja Meat Company (98%), Interfoods (98%), Kremonini (97.32%), Mekom (99%), Silistra Hybrid (80%), Rusgal (80%), Ronex (99.33%), OMV OOD (99%), Druster BV (99%), SVI (88%), and Select (96%).
More details on Mekom for the period 30 June 2005 and 30 June 2007 are given in the chart below:
|Indicators (in thousand BGN)||30 June'05||30 June '06||30 June'07|
|Net sales revenue||16.2||17.34||29.93|
|Total capital and receivables||49.86||60.24||59.8|
Source: Mekom Jsc