AB gears up for debut

Wrocław-based IT and consumer electronics distributor AB has taken advantage of the boom in both sectors.

"The IT market has grown at a rate of 11 percent per year; in the last three years, our growth amounted to 29 percent," says Piotr Nowjalis, AB's financial director. Between 2003 and 2005 the company's net profit rose three times. In H1 this year, its net profit reached zł.2.2 million, 125 percent more than in H1 2005.

In order to secure further long-term growth, by the end of 2007 AB is going to spend zł.26.8 million on investments. The money will be spent on the development of a logistics center, cooperation with the retail chain Alsen (AB wants to increase the number of chain stores from 129 to 350 in 2008), and upgrading its IT system. Out of this sum, zł.18 million will be raised from the WSE floor.

Over six million shares will be offered to investors, including 1.6 million new shares, at a maximum price of zł.12. Book building will end on September 6. Individual investors can sign up for shares between September 4-6, while institutional investors between September 7-8. Last week the company published its issue prospectus. Potentially, 55.1 percent of the firm's shares could be free floated.

AB's operational director, Dariusz Rochman, stresses that the company should benefit from the convergence of IT and consumer electronics. AB wants to widen the range of the latter types of products on its offer and is also planning to expand into the mobile-telecommunications market.

Katarzyna Marcinkowska