Lingerie on the bourse

Following its establishment in 1961, Mewa was known for its underskirts. Now, after a thorough restructuring, the company wants to expand its new Look at women's wear brand, as well as its newly acquired lingerie brand, Szame, and become the leader on the lingerie market.

"The Polish lingerie market is fragmented. German Triumph is the leading brand. Mewa has the potential to become a leader," says Dorota Kenicer, deputy president of Mewa.

To achieve this the company wants to issue B-series shares at a price of between zł.2-2.40 and to debut on the Warsaw Stock Exchange on January 3 as the first company to do so in 2007.

The company plans to raise zł.11 million from the IPO. According to Józef Kiszka, president of Mewa, the funds will go towards the development of its distribution network. "In 2007 we will spend zł.5.5 million on opening four new Szame shops, and zł.2 million on six Look at shops," says Kiszka.

By the end of 2006 the management plans to have opened four Look at shops. Mewa already has six of its own Szame stores and 16 franchises in Poland, and sells its products in nine shops in Ukraine. According to Kenicer, Mewa is taking part in talks on renting space in existing shopping centers as well as in new ones, and wants to strengthen its position on eastern markets.

The company predicts its net profit will reach zł.1.09 million with sales of zł.25.5 million. Next year profit is forecast to reach zł.1.3 million on sales of zł.31 million.