Ukrainian battery producer Westa to raise $69 mln from IPO on WSE
KYIV. May 18 (Interfax) - Luxemburg-based Westa ISIC S.A, a holding company for Dnepropetrovsk-based international scientific and industrial corporation Westa, plans to hold an initial public offering (IPO) on the Warsaw Stock Exchange this month, Westa ISIC said its IPO prospectus.
The document said that Westa ISIC is presenting 11.033 million new shares for purchase (or 33% of all company stock) at a maximum price of 17.3 Polish zloty. Therefore, Westa ISIC might raise up to 190.877 million Polish Zloty ($68.891 million at the current rate) through the IPO.
The placement price will be announced at the end of May 2011. In addition, the company expects to see the new shares included on the WSE listing on June 15.
BG Capital JSC and BG Trading Ltd are the placement's lead managers along with Dom Maklerski BZ WBK S.A.
A portion of the funds raised will be earmarked for acquiring and setting up new equipment for the production of valve-regulated lead-acid batteries (VRLA batteries) with absorbed glass mat (AGM) technology, which is widely used in cars installed with start-stop systems.
The company said that VRLA AGM batteries are highly profitable to produce and do not face seasonal changes in sales. Upon full installation of this production equipment, the company's sales revenue will go up by $36 million while EBITDA will come to $15 million.
In addition, a portion of the funds raised will be used for optimizing the company's capital structure and improving its financial standing through paying off loans, the document said.
According to the prospectus, Westa ISIC increased its consolidated revenue by 86% to $154.305 million in 2010. The company's EBITDA came to $55.285 million, which was an increase of 233% from 2009.
The holding's net profit for 2010 came to $33.967 million compared to $23.285 million in net losses a year previous.
Westa is one of Ukraine's leading battery producers.
The company primarily specializes in the production of electrical accumulator batteries for various types of use.
