Bourse Action to fuel foreign expansion

IT equipment distributor Action will float 27.4 percent of its shares on the Warsaw Stock Exchange (WSE) to raise zł.70 to 90 million for further development. Eighty percent of the offer will go to institutional investors, the rest will be available for individuals.

Currently the second-biggest player on the Polish market of IT equipment distribution, Action wants to outpace its main rival, ABC Data.

The IPO will provide it with new sources for investments. "There are three main areas for which we would like to obtain funds: we would like to increase our turnover capital for tenders, make investments on the Ukrainian market, as well as invest in Poland,  where an internet platform for retail sales will be created," said Piotr Bieliński, CEO of Action.

In Ukraine the company wants to develop its retail network by building two to three supermarkets a year. In Poland, Action will upgrade its warehouse near Warsaw and implement modern transport systems. It also plans to sink zł.6-8 million in the internet store a.pl, which will be launched in Q4 this year.

Action distributes equipment produced by firms such as Microsoft, Intel, LG or Max Data. It also has four of its own brands. In Q1 2005/2006 (fiscal year ending on July 31) the company posted a net profit of zł.11.4 billion, a significant improvement on Q1 2004/05, when it had a net loss of zł.1.6 million.

The bookbuilding process will last from July 4-5 and subscription for shares for both individual and institutional investors will be taken on July 6-7.