Another ATM heads for the floor
The company's share issue prospectus, prepared with the BDM PKO BP brokerage house, is set to be filed with the Securities and Exchange Commission (KPWiG) within the next few weeks.
The firm is currently in the process of shifting its profile towards telecommunications services. Indeed, about half of its total 2003 revenues were gained from that source. Furthermore, that share has been steadily increasing, with telecom revenues nearly doubling in the first quarter of this year to reach zł.10 million, as opposed to zł.5.4 million a year earlier. The main clients of ATM's fiber optic networks are financial institutions, such as PKO BP, BRE Bank and Warta, an insurer, as well as other telecoms operators, including Crowley Data Poland and Telia.
"We see clear signs of a boom on the corporate telecoms market and we are looking to benefit from it," says Chief Executive Officer Roman Szwed. He also adds that the business guarantees higher future revenue streams, thus reducing risks for investors. ATM is looking to invest zł.20 million in developing its telecom services, with the bulk of the capital raised on the public market.
While ATM is looking to raise less than zł.20 million, the total value of the offering is likely to be around zł.50 million, as the financial investor, Polish Pre-IPO Fund, will sell its 30 percent stake in the company. Some analysts worry that this could reduce the attractiveness of the offer by decreasing the potential for oversubscription and thus make price hikes unlikely soon after the debut. Another three percent of the stock will be available in a restricted offering to employees. These shares will be excluded from the public market for a minimum of six months.
The firm's revenues have been falling yearly from a peak of zł.107 million in 2000. Managing Director Artur Thielman ascribes this to the company's changing profile, which has been shifting towards a higher-margin services business. The company made a net profit of around zł.2 million on revenues of more than zł.70 million in both 2002 and 2003. Forecasts of financial results for this year are not yet available and will be released together with the prospectus.
Thielman points out that ATM occupies a unique place on the domestic market as it is the only company marrying IT integration with telecommunications services. Analysts, while stressing the convergence of the two industries over recent years, doubt, however, whether expertise in integration will provide leverage over other telecom operators.
The firm is currently in the process of shifting its profile towards telecommunications services. Indeed, about half of its total 2003 revenues were gained from that source. Furthermore, that share has been steadily increasing, with telecom revenues nearly doubling in the first quarter of this year to reach zł.10 million, as opposed to zł.5.4 million a year earlier. The main clients of ATM's fiber optic networks are financial institutions, such as PKO BP, BRE Bank and Warta, an insurer, as well as other telecoms operators, including Crowley Data Poland and Telia.
"We see clear signs of a boom on the corporate telecoms market and we are looking to benefit from it," says Chief Executive Officer Roman Szwed. He also adds that the business guarantees higher future revenue streams, thus reducing risks for investors. ATM is looking to invest zł.20 million in developing its telecom services, with the bulk of the capital raised on the public market.
While ATM is looking to raise less than zł.20 million, the total value of the offering is likely to be around zł.50 million, as the financial investor, Polish Pre-IPO Fund, will sell its 30 percent stake in the company. Some analysts worry that this could reduce the attractiveness of the offer by decreasing the potential for oversubscription and thus make price hikes unlikely soon after the debut. Another three percent of the stock will be available in a restricted offering to employees. These shares will be excluded from the public market for a minimum of six months.
The firm's revenues have been falling yearly from a peak of zł.107 million in 2000. Managing Director Artur Thielman ascribes this to the company's changing profile, which has been shifting towards a higher-margin services business. The company made a net profit of around zł.2 million on revenues of more than zł.70 million in both 2002 and 2003. Forecasts of financial results for this year are not yet available and will be released together with the prospectus.
Thielman points out that ATM occupies a unique place on the domestic market as it is the only company marrying IT integration with telecommunications services. Analysts, while stressing the convergence of the two industries over recent years, doubt, however, whether expertise in integration will provide leverage over other telecom operators.
