Climbing the WSE

Euromark Polska, the owner of the Campus and Alpinus outdoor apparel brands, had its issue prospectus approved by the Securities and Exchange Commission. The subscription for shares for both institutional and individual investors will take place from 13 to 15 September. The maximum price has been set at zł.20, but the offering broker, DM Millennium, values them at zł.16.70.

Euromark, which designs and manages its brands but outsources production mainly to China, now has five outdoor labels in its portfolio such as the mid-market Campus, which generates some 80 percent of the company's sales, the upmarket Alpinus and youth brand Stir Crazy. In 2007 the company will launch an upmarket women's brand, Snow Cat.

"We would like to raise zł.40 million from the issue to support our development strategy," Tim Roberts, president of Euromark, told WBJ in June. "We would like to use the funds to expand the Alpinus brand. We're also planning expansion in Ukraine," he added.

According to the issue prospectus, zł.8 million raised from the floor will be spent on the development of the Alpinus brand, zł.10.1 million on the expansion of the retail network, zł.1.3 million will go into opening an office in Ukraine and zł.15 million will be earmarked for takeovers.

The company announced that it wants to consolidate the Polish outdoor market but it doesn't plan any acquisitions this year. Jarosław Parczewski, analyst at DM BGŻ, believes Euromark will look for potential takeover targets among equipment producers rather than clothes companies.

In the fiscal year ending February 28, 2006, Euromark's consolidated revenues reached zł.82.4 million while net profit amounted to zł.8.1 million. In the issue prospectus the company estimates that in the ongoing fiscal year Euromark's revenues will swell to zł.111 million and in 2007-8 it will grow to zł.155 million, with net profit amounting to zł.10.2 million and zł.15.1 million respectively.