Fresh funds for TUP

This month TUP will issue 5.5 million shares to raise some zł.110 million in fresh capital. Interested investors will be able to subscribe for new shares between October 4 and 8, with 1,375,000 shares available for individual investors and 4,125,000 shares intended for institutional investors. Brokerage firm BZ WBK will handle subscriptions for the issue until October 11 and issue shares within the week. The price per share will be announced on October 3.

While TUP will not offer a right of refusal on the current issue, TUP's existing minority shareholders will have the option to take advantage of a preferential two-for-one offer. However, the company says the issue is focused on attracting new investors. The new share issue comprises 36.2 percent of TUP's total stock and is expected to raise the company's starting capital from zł.9.7 million to zł.15.2 million.

According to Ryszard Czerwiński of BZ WBK, capital gains will be used to finance the existing development pipeline. This includes the development of a 33-ha logistics complex in Tarnowskie Góry, commercial developments in a dozen smaller cities across Poland and two major residential "village" developments in the Katowice area. TUP president Robert Moritz said the company also has its eye on "several new investment opportunities."

TUP also actively invests in ailing companies with the goal of regaining profitability TUP's income forecast for this year projects a net profit of zł.28 million.