Pro Kapital Grupp launches public offering
27.08.2012, 09:12Pro Kapital Grupp has published the prospectus for a public offering of shares to institutional investors as well as the general public of Estonia, Latvia and Lithuania and has filed an application to list the shares on the NASDAQ OMX Baltic exchanges main list.
The offering consists of up to 37 million newly issued shares. The price is expected to be between EUR 1.90 and EUR 2.05, to be determined after the completion of the book-building process directed at institutional investors and announced on or around September 10. 1,000,000 shares could additionally be issued in order to cover possible over-allotments. Assuming all offered shares will be subscribed to, the new shares would represent 41.03 percent of the share capital of the company.
“Through the offering, Pro Kapital aims to raise between EUR 70.3 million to EUR 75.9 million mostly to finance the three new real-estate development projects,” COO of Pro Kapital, Allan Remmelkoor said. “The real-estate market in the Baltics seems to be rebounding from the bottoming-out during 2009 and 2010, and since we are in the business of making long-term development projects, the market conditions seem ripe.”
Mikus Janvars, a partner at Porta Finance, the lead advisor to the company, said that the offering is set to become the largest public offering in the Baltics since 2007. “We are confident in the success of the upcoming offering as we see increasing investor demand for the shares allowing investors to capitalise on the successful turnaround of Baltic economies. In addition we see the offering as an important signal for other companies looking to raise capital in the Baltic region,“ he commented.
The improving economic environment in the Baltics as well as the track record of Pro Kapital’s previous projects has encouraged the company to move forward with Peterburi road shopping centre and Tondi residential quarter in Tallinn, and a residential project on Tallinas street in Riga, as well as continuing with work on others,” said Paolo Michelozzi, CEO of Pro Kapital. “While we do have substantial debt head-room the initial phases of three new developments require investments exceeding EUR 130 million and therefore we have decided to do a public offering of shares.”
Retail subscribers in Estonia, Latvia and Lithuania can subscribe to shares at the upper limit of the price range of EUR 2.05. If the price is set below the upper limit, subscribers’ accounts will be charged accordingly. There is no guaranteed minimum allocation or maximum limit for retail subscriptions. Subscriptions can be placed via any of the securities accounts’ administrators noted in Prospectus.
Pro Kapital Grupp is a leading Estonian real estate development company with a focus on modern large-scale commercial and residential real estate projects in the capitals of Estonia, Latvia and Lithuania. Since its establishment in 1994, the Company has completed 20 development projects. Several of the Company’s projects have been milestones in the Baltic real estate market. Every day, more than 50,000 people wake up, go to work, do their shopping or eat out in the buildings developed by Pro Kapital.
The company employs 142 people in Estonia, Latvia, Lithuania and Germany. In 2011, its revenue was approximately EUR 17.5 million and net profit EUR 50.1 million. The current portfolio of 11 properties of the company (mainly residential and retail properties) has been valued at EUR 180 million by Newsec.