Bulgaria: Railway Infrastructure Holding IPO Proceeds to Be Invested

26.06.2008 (12:59)

Railway Infrastructure Holding, majority-owned by controversial businessman Vassil Bozhkov, will spend all proceeds from its forthcoming initial public offering (IPO) on investments, the company said.

The company hopes to scoop at least BGN 65m. According to sources from the stock exchange, as quoted by Dnevnik, the IPO has generated a huge interest and was expected to serve as the litmus test for market sentiment.

A score of primary or secondary offerings this year were either postponed or shelved because of the downturn on the local market.

According to Orlin Hadjiankov, deputy head of the holding's supervisory council, the IPO would be a success. If the IPO fails to generate the minimum financing, it would be procured through other channels.

Railway Infrastructure Holding hopes to get at least BGN 28m through the sale of 5.5 million new shares in the three days through June 27. The minimum issue price is set at BGN 5.

The company has not set a price range because the market was mature enough to make an educated estimate, said Boika Vassileva from the United Bulgarian Bank, the lead manager of the issue.

The IPO will be conducted using the book-building process and the results would be known by June 30, whereas the payment of securities would take place on July 1-3, Railway Market-CEE Review reports.

(1.00 BGN = 0.511019 EUR)