Erbud floats

Erbud, a building company that operates in Poland and six other Western European countries, will debut on the Warsaw Stock Exchange at the beginning of May. In total the company will offer 3.4 million shares, including 2.5 million shares in the initial public offer. Free flotation after the IPO will reach 27 percent. The comprehensive value of the offer is estimated at some zł.150 million.

Erbud aims to acquire zł.105 million, three quarters of which will go towards acquisitions, according to board member Józef Zubelewicz. The company intends to acquire companies from the road construction, engineering and real-estate development sectors. The remaining zł.30 million will be transferred to the turnover capital, enabling the company to increase the scale and competitiveness of its operations.

Dariusz Grzeszczak, also a member of the board, expects infrastructure sectors to grow dynamically thanks to an influx of EU funds. He confirmed that Erbud is currently negotiating takeovers with three companies. "We are sure we will be able to complete at least one acquisition this year," Grzeszczak stated.

Erbud's current portfolio includes 45 contracts signed in 2006 worth a total zł.630 million in adition a zł.45 million contract in 2007.

Erbud estimates the growth of the construction market at between eight and 11 percent for the next five to 10 years. For the last four years, the company's revenues have been rising and in 2006, revenues reached zł.394.7 million, 76.3 percent higher than in 2005. According to the prognosis included in the issue prospectus, this year's revenues are expected to reach zł.661 million, with net profits amounting to zł.24 million, up 800 percent over last year.