Nuts about the bourse

Dried fruit and nuts producer Bakalland is going public to raise funds for more takeovers and the creation of a strong capital group. After taking over Hordgal, owner of the Bakalnuss brand, and Komosa, a distributor of seeds and nuts, Bakalland has signed a preliminary agreement for the takeover of health-food producer Solger for zł.450,000.

Formerly known as Uno Fresco Tradex, Bakalland wants to increase its share in the zł.540-million nuts and raisins market from the current 24.6 percent to 35 percent. It has already announced new acquisitions which are to be funded by the money Bakalland will raise from the floor.

"Eighty percent of shares will be offered to institutional investors. With the maximum price at zł.6.30 per share, the value of the IPO can reach zł.33 million. This will enable the company to raise over zł.15 million," said Mariusz Piskorski from Ipopema Securities, the brokerage house preparing the IPO. The remaining zł.15 million will go to current shareholders selling the exiting shares.

"The aim of the share issue is to finance the development of the company through acquisitions. We're already in talks with a couple of entities," said Marian Owerko, Bakalland's CEO. "We're especially interested in nuts and raisins producers but also rice and barley, jams, beans and cereals," he added.

He stressed that the nuts-and-raisins market is growing at an annual rate of five to seven percent and that he would like to see Bakalland's turnover reach zł.250-300 million in two years' time.

This year the company's revenues are expected to reach zł.150 million, not including Solger, which is a 20-percent increase year-on-year. The net profit will amount to zł.7.6 million.