Eurofilms stretches its production

The issue price for shares of the stretch-film producer Eurofilms has been set at zł.4. The company is offering 6.5 million shares to institutional investors and 1.5 million to individuals.

"The IPO is aimed primarily at co-financing capital investments that can significantly increase the production capacity of the company, by 50 percent as regards stretch film and by 100 percent in the case of PVC thermoshrink film," says the company's communique.

Current production capacities have been exhausted and Eurofilms would like to strengthen its position on domestic and foreign markets. Currently, 23 percent of the company's revenues come from exports while the management wants the figure to reach 40 percent. The market of films in Poland is expected to grow six percent annually.

In 2005 Eurofilms posted zł.99.7 million in sales revenues and zł.6.2 million in net profit. The company predicts a 2006 net profit of zł.5.5 million and revenues of zł.133.4 million.

Eurofilms employs 90 people. Its main shareholders are Ergis, which owns over 82 percent of Eurofilm's capital, and Finergis Investments Limited, which controls the remaining 17 percent.