November 13 (SeeNews) - Bulgarian metal packaging manufacturer Bulmetal said it has decided to increase its capital via an initial public offering (IPO) of up to 1.13 million new voting shares.
The shares, with a par value of 1 lev, will be offered for subscription between November 15 and November 22 at an issue price of 8.85 levs ($4.83/4.52 euro), Bulmetal said in a prospectus published on the Financial Supervision Commission's (FSC) website earlier this month. The securities will trade on the standard equities segment of the Bulgarian Stock Exchange.
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Bulmetal stands to raise some 9.78 million levs if all shares are subscribed for.
The capital hike will be considered successful if at least 900,000 new shares are subscribed and paid for.
The proceeds will be used to fund the company's investment programme focused on increasing production capacity, optimising and automating production, including aerosols, and market expansion. The funds will also go towards refinancing existing investments, such as a technological line for deep-drawn can production.
Local brokerage firm Elana Trading will act as investment intermediary on the IPO.
The prospectus for the capital increase was approved by the FSC earlier this month.
The company's equity capital is divided into some 6.23 million shares with a nominal value of 1 lev apiece, commercial register data show.
Bulmetal booked a net profit of 1.44 million levs in the first half of 2023, down from 6.89 million levs a year earlier. In the review period, the company's total revenue grew to 58.8 million levs from 52.5 million levs.
(1 euro = 1.95583 levs)