M&T 1997 (so far Material & Technology), a manufacturer of door handles and fittings from Dobruška, wants to enter the Start of the Prague Stock Exchange.
The company expects a public offering of shares, including their admission to trading, by the end of June this year, the company wrote in today’s announcement.
The bidder will be the current 100% shareholder Ivo Ulich, who will place a total of 35 percent of the company’s shares among investors through both public and private offers. About one third of the intended volume should be sold by the public offer alone. The company expects revenues of at least 112 million crowns from the sale, which the company would rate at least 320 million, the company said.
The transaction advisor is the Starteepo financial group, whose fund Czegg Ventures becomes more than a 20% shareholder of M&T 1997 through this transaction.
As of May 12, the name of the company (from Material & Technology to M&T 1997) and its legal form (from a limited liability company to a joint stock company) changed. The share capital increased to the current 128 million with 12,800 shares.
The company is “at an advanced stage of negotiations” with the Czech National Bank in approving the public offer prospectus. The book-entry of shares is also taking place at the Central Depository these days, she wrote in today’s announcement. The IPO parameters will be published by the company immediately after the approval of the prospectus.
“Admission to the stock exchange is a prestigious milestone for M&T in its 25-year history,” says Ivo Ulich. His older brother Roman stood at the beginning of the company in 1997. The company first operated as a salesman, then started its own production. Ivo Ulich began to devote himself fully to the company in 2008. “I invested about two thirds of the money I earned in football in the company,” he writes on the company’s website. Ivo Ulich is now the managing director and 100% owner. Another of the brothers, Petr Ulich, is the operations director. Roman Ulich works as a chief designer and is responsible for product development and business activities in the Czech Republic.
Last year, the company had a net profit of 30.3 million crowns, which is 139% more year-on-year than the year before. Revenues increased by 16 percent to 150.5 million crowns, operating EBITDA by 87% to 42.1 million. The company has 50 employees, exports to 54 countries and also has a building permit for the new hall.
In March, the Forbes website wrote that a single share should be subscribed for more than 25 thousand crowns, which would exceed the price of the Philip Moris share (almost 18 thousand per share). “Our intention is not just to be on the stock market. We would like to be a dividend peak. Rather than a sharp rise in shares, we will provide investors with an interesting dividend yield, “said Ivo Ulich to Forbes. “It’s not my exit. I am not relieving myself of responsibility, on the contrary, it will increase, “he adds.
The Slovak company Gevorkyan from the field of powder metallurgy will also enter the Start market of the Prague Stock Exchange this year, which will go for further development for up to 800 million crowns. The second newcomer will be the Coloseum restaurant chain, which wants to raise up to 100 million crowns.
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