IPO al dente

Makarony Polskie, a manufacturer of pasta, has had its issue prospectus approved and is expected to debut on the Warsaw Stock Exchange in mid-April. The company will offer three million series C shares, of which around two million will be designated for institutional investors and one million for individual investors. The issue price has been set at between zł.6.7-9.

"We would like the subscription right to be listed as soon as it is possible following the issue. [We will debut] in April for sure," said Paweł Nowakowski, the president of the board.

Makarony Polskie is expecting zł.19-25 million from its debut, most of which will be spent on development of its sales network, increasing production and exports, and on acquisitions. The company is currently in the process of merging with Stoczek, a producer of frozen foods and preservatives. Nowakowski also announced that further M&A talks would start after the share issue. The aim of the firm is to become one of the three largest pasta producers in Poland, with 20 percent of the market.

Rzeszów-based Makarony Polskie currently holds 13 percent of the pasta market in Poland, while around five percent of its production is sold abroad, mostly in the Czech Republic, Slovakia and the US. It offers its products under its own brand and private labels. In 2006, the firm's net profit was zł.1.8 million and in 2007 this figure is expected to grow to zł.2.7 million. Along with projections based on Stoczek's results, total net profit in 2007 is forecast to come in at zł.4.4 million.

The Polish pasta market is worth about zł.637 million and, according to experts' projections, it is expected to grow by around three to five percent annually.