Pivovary Lobkowicz sells 2.3m shares in IPO


23.05.2014 12:09

Prague - Pivovary Lobkowicz, the fifth biggest beer maker in the Czech Republic, has sold all 2.3 million newly issued shares in the initial public offering (IPO) and there is an option for another 230,000 shares, the company announced in a press release today.


Pražská akciová burza, Burzovní palác - ilustrační foto. ČN Vilém Kolomazník

The offered price for traders and institutional investors has been set at Kc160. Another 3.4 million shares of the current shareholders were to be part of the offer but the shareholders decided to keep their shares.

Trading in the company´s shares is to begin on the Prague Stock Exchange (BCPP) on May 28.

The total volume of the traded shares, including the option, is almost Kc405m, which corresponds to market capitalisation at Kc1.87bn, the company said.

Apart from domestic investors, investors from Austria, Poland, Hungary and Slovakia were also interested in the shares. The company has been pleasantly surprised by the demand for the shares.

"The placement of the shares on the market will bring us capital for further development, both in the Czech Republic and on export markets," said board chairman and CEO Zdenek Radil.

Up to Kc200m from the money gained from the share issue is to be invested into the extension of the company's distributing network and gaining of new clients in the gastronomy segment.

Some Kc100m is to go for a pre-negotiated acquisition of an unnamed brewery with annual output between 80,000 and 100,000 hectolitres of beer that the company plans to complete this year.

The investments have been motivated, among other things, by plans for a bigger penetration of foreign markets, in particular Slovakia, Russia and other former Soviet states.

The Pivovary Lobkowicz group owns seven local breweries. Entrepreneur Martin Burda with a 55 percent share was the company's majority shareholder in the middle of May.

After the completion of the billions of crowns worth share issue, his stake was to drop to 32.33 percent. The share of financier Grzegorz Hota was to decrease from the current 30 percent to less than 16 percent.

Radil's share was to shrink from the current 9 percent to 3 percent. Entrepreneur Eva Kropova now holds 6 percent of the shares but in the future she should keep only 0.01 percent.

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