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June 27, 2005
Zakłady Azotowe Puławy published an issue prospectus within the public offering. Investors will be able to buy up to 5 515 thousand new shares.
- Public offer of Zakłady Azotowe Puławy is planned for late August and early September. Our shareholder represented by the Ministry of the State Treasury has preliminarily accepted the bid calendar. I believe that investors will be interested in the public offer of the largest and most profitable enterprise in the fertilizer-chemical industry in Poland, says Zygmunt Kwiatkowski, Chairman of the Board ZA “Puławy”.
The public offering of Zakłady Azotowe Puławy contains 5,515,000 Series B new issue shares.
The offering is divided into:
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the Retail Offering, comprising 1,654,500 shares, i.e. 30% of the offered shares, and
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the Institutional Offering, comprising 3,860,500 shares, i.e. 70% of the offered shares.
Post offering, new investors may hold almost 29% of Puławy's share capital. The Polish State Treasury, currently the sole owner of the company, will continue as the largest shareholder in ZA Puławy.
Detailed schedule of the offer is presented in the table below:
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August 29 |
Public announcement of the price range |
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from August 29 to September 6 |
Subscriptions in part for individual investors |
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from August 29 to September 7 |
Demand book development process |
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September 7 |
Public announcement of the issue range |
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from September 8 to September 9 |
Subscriptions in part for institutional investors |
CA IB Securities performs the function of the offering party.
OBJECTIVES OF THE ISSUE AND USE OF PROCEEDS
Proceeds from the public offering will be used to partially finance the company's development programme. The aggregate value of capital projects ZA Puławy plans to complete over the next three years is ca. PLN 700m. These projects are to be financed, in roughly equal parts, with the issue proceeds and with internally generated funds.
The planned projects are to be carried out in four major areas:
- Production capacity enhancement, launch of new products and related structural investments. Increase in melamine and fertilizers production capacity. ZA Puławy also plans to launch marketing of modified products based on ammonium nitrate and caprolactam. In addition, the company intends to extend its product offering by adding a substance based on carbohydrate processing (used in such sectors as pharmaceutical, cosmetic or food industries) as well as peroxide-based products (used e.g. in the paper industry).
- Modernization of the existing systems (efficiency improvements).
- Replacement investments (improvement of safety and continuity of operations in such areas as energy supply facilities).
- Environmental protection.
Planned investments are presented in the table below:
|
Type of investment |
Value |
|
New products and capacity enhancement |
PLN 360m |
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Systems efficiency improvements |
PLN 147m |
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Replacement investments |
PLN 96m |
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Environmental protection |
PLN 103m |
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Total |
PLN 706m |
The Zakłady Azotowe Puławy operates in three main product markets:
- fertilizers for the agricultural sector (urea, ammonium nitrate, saltpeter-urea solution, ammonium sulphate) – leading manufacturer in Poland and in the world,
- melamine (used in the production of synthetic resins used, among other things, in the furniture industry, in the market of paints and lacquers, textile or paper industry) – the third largest manufacturer in the world, the only manufacturer in Poland,
- caprolactam (material used, among other things, in the production of textile or industrial fibres, for the production of carpets or engineering resins used in the automotive, electronic and food industries) – ca. 33% share in the domestic sales.
The company is the largest one in the fertilizer-chemical industry in Poland and a manufacturer of global importance. Nearly a half of its revenues come from exports.
In the last financial year (ending on June 30, 2004), ZA Puławy achieved 1.68 billion PLN worth of revenues and 152.3 million PLN worth of net profit. After three quarters of the financial year 2004/2005, revenues amounted to 1.44 billion PLN while the net profit amounted to 151.6 million PLN.
Additional information can be obtained from:
Piotr Wojtaszek
NBS Public Relations
(22) 826 74 18
pwojtaszek@nbs.com.pl |
