Entertaining the exchange

Multimedia Polska has announced that its IPO will be divided, with a domestic offer for both individual and institutional clients and an international offer which will be presented to select, qualified investors.

Subscription for Multimedia shares has already begun for individual investors and will continue until November 2. Institutional clients will be able to subscribe from November 3-6.

Part of Multimedia's IPO will involve the issue of new shares. However, Multimedia's current shareholders, including ABN AMRO Ventures, Tri Media Holdings, Andrzej Rogowski, Stanisław Tyc and Jan Owczarek, will offer their existing shares.

It is predicted that only 15 percent of the IPO will be directed at individual investors and their subscription will be restricted to existing Multimedia Polska shares, whereas institutional investors will be able to purchase new shares, as well as those already held.

The company plans to acquire about zł.300 million net from its share issue. A portion of the money raised from the floor is earmarked for Multimedia's digital TV project. Around zł.60-70 million is designated for providing its clients with TV decoder-boxes, which are necessary for receiving digital TV signals. Another zł.100 million will be used to repay the firm's debts. The rest of the newly-gained funds will be used for acquisitions of local cable operators.

"The issue and the stock exchange are a part of our strategy," says Andrzej Rogowski, the president of Multimedia Polska. "We plan to continue taking part in the market's consolidation process. The market is fragmented, with over 630 companies operating, while about 47 percent of the market is controlled by the four biggest operators."