Netmedia floats to boost bottom line and credibility

"Purchase declarations placed by large investors have many times exceeded the portion envisaged for them,"said Andrzej Wierzba, president of Netmedia. The Warsaw-based company has already designated some funds gained from the issue for development, while zl.3.4 million will be earmarked for acquisitions of market competitors in the tourism or real-estate industries. Netmedia also plans to spend zl.600,000 on investments in hardware and software, while zl.300,000 will be spent supplementing working capital. The public offering will cost Netmedia almost zl.700,000, which is roughly 14% of the proceeds from the floatation."By becoming a stock-listed enterprise we will prove our credibility to business partners," explained Wierzba. According to a forecast for 2006 the company will post a profit of zl.0.81 million on sales revenues of zl.2.75 million, while next year the figures should increase to zl.1.56 million and zl.4.35 million respectively. (Parkiet, p. 7) M.M.