Agora ready with public share offer

The company's prospectus, just cleared by the Securities and Exchange Commission (KPWiG), said the public offer should start by Feb. 25, but "the schedule for the offer changes practically every day," Niemczycki said. "We would like to make it as fast as possible."
The purpose of the new share issue is to raise capital for investment projects which include development of printing facilities, computer upgrades and construction of a new office building. Over the next three years, the company plans to spend about zl. 632.5 million ($180.7 million). In addition, about 32% of the money raised will help finance a DM 55 million credit facility Agora has with Credit Suisse First Boston.
Agora, which currently has 44.1 million shares outstanding, plans to increase its capital by 28.6% through the issue of 12.6 million new shares. The company's 2,350 employees will be offered 2.2 million of the shares at face value of zl. 1 per share.
Currently, 96 managers within the company hold a 42.73% stake, while Agora Holding owns 43.6% (with 56.9% voting rights), while 13.1% is held by U.S.-based Cox Poland Investments. Agora Holding is owned by Wanda Rapaczynski, Niemczycki, and Helena luczywo, all of whom sit on Agora's management board, as well as Seweryn Blumsztajn, deputy director of the publishing house, and Juliusz Rawicz-Twarog, deputy editor in chief of Gazeta Wyborcza.
Up to 1.35 million of the new shares are to be traded as Global Depository Receipts (GDRs) in London.
"We think this increases the chance to sell the offer well," Niemczycki said. "The situation on our (Warsaw) stock exchange is that sometimes it does not offer sufficient liquidity."
Apart from Gazeta Wyborcza, Agora is involved in a number of other media projects in both the print and broadcast arenas. These include six local radio stations, a 20% stake in the company that broadcasts Canal+ Polska and a literary quarterly among others.
The company has a 30% share of the total print advertising market in Poland and a 9% share of the total ad market, according to its abbreviated prospectus.
In 1997, Agora's net sales increased 41% over the previous year to zl. 416.5 million ($130.2 million). In the first nine months of 1998, sales were zl. 389.5 million ($111.2 million). The sales performance over the first three quarters accounted for 71.5% of total planned 1998 sales of zl. 545.1 million ($155.7 million). Comparative figures for the first nine months of 1997 were not provided. Net profit in 1997 jumped 84.8% against the previous year to zl. 74.1 million ($23.2 million). In the first nine months of 1998, net profit was zl. 34.5 million ($9.8 million), although the company said ad sales are usually strongest in the fourth quarter.