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Pro Kapital to go ahead with shopping mall project in spite of IPO failure

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Ok this simply doesn't make sense.

They wanted to raise 75mln in an IPO, to invest in 3 projects total. Just one of the project (shopping center) costs 89mln to build.

So, if the IPO raised only 75mln, where would they get the additional money to fully fund all 3 projects? Not from their own cash, since according to their June 30 balance sheet, they only have about 2mln in cash.

So would the rest of the financing come from the banks?

If so, if the projects were so great, why not skip the IPO altogether and just get it all from the banks, like they are now proposing?

Perhaps the banks (who were potential IPO investors anyway) looked at the project and felt it was not worthwhile? Reply to the comment answer
~ameeriklane [13.09.2012, 16:48]
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"In 2011, Pro Kapital posted a revenue of EUR 17.5m and a net profit of EUR 50.1m"

I agree that this article doesn´t make sense. A profit 3 times higher than revenue??? Reply to the comment answer
~Dag [13.09.2012, 17:27]
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