Publisher of Poland's largest newspaper going public
The company confirmed last week that it will offer 9 million shares, or about 16% of the company, on the Warsaw Stock Exchange (WSE) and in London. Slated for this fall, the offering will give the WSE its second listing of a media company. Right now only billboard operator Art Marketing Syndicate (AMS), which went public in April, is traded on the exchange.
AMS' share price has risen 24.4% since its debut April 23, when it hit a high of zl. 53.50, but closed at zl. 44 on Friday, as a result of the market's drop last week.
"Judging from the market debut of AMS, the interest in Agora's offer should be enormous," said Beata Palka, an analyst with Wood & Co. "But in comparison with Agora, AMS is just a peanut."
In its issuing prospectus, AMS projected 1998 revenue will be zl. 77.29 million ($22.73 million) with net profit of zl. 14 .04 million ($4.13 million). While Agora in 1997 had revenue of zl. 416.45 million ($130.12 million) with net profit of zl. 74.1 million ($23.15 million).
The company also has a much wider media presence than AMS, which operates the largest billboard network here. In addition to publishing Gazeta Wyborcza, Agora also has stakes in several radio stations as well as a 20% interest in Canal+Polska's pay television station. To top it off, the company plans to take a 10% stake in the new digital TV station being launched this fall by Canal+ and @Entertainment.
In addition to the 9 million new shares Agora plans to offer, the company also intends to give 2.3 million additional shares to employees. Agora currently has 44.14 million shares, but it plans to increase it share capital - and the corresponding number of shares - by 28% before the offering takes place. The company plans to use the cash raised for new printing houses as well as additional investments in radio and television, Agora said in a statement.
The company would not disclose any more details about the offering, saying the issuing prospectus would be ready in a few months. CS First Boston is underwriting the offering.
Agora's only publicly disclosed shareholder is Cox Poland Investments, a subsidiary of the U.S.'s Cox Enterprises, with 13%. According to Forbes magazine, Cox's sales in 1997 were $1.6 billion.
For its part, AMS's stock has performed well since the company began trading April 23 at zl. 43 a share. In its IPO, the company originally sold 1.25 million shares at zl. 34 each, marking a 26.5% increase from the time of the sale to the actual listing.
AMS' share price has risen 24.4% since its debut April 23, when it hit a high of zl. 53.50, but closed at zl. 44 on Friday, as a result of the market's drop last week.
"Judging from the market debut of AMS, the interest in Agora's offer should be enormous," said Beata Palka, an analyst with Wood & Co. "But in comparison with Agora, AMS is just a peanut."
In its issuing prospectus, AMS projected 1998 revenue will be zl. 77.29 million ($22.73 million) with net profit of zl. 14 .04 million ($4.13 million). While Agora in 1997 had revenue of zl. 416.45 million ($130.12 million) with net profit of zl. 74.1 million ($23.15 million).
The company also has a much wider media presence than AMS, which operates the largest billboard network here. In addition to publishing Gazeta Wyborcza, Agora also has stakes in several radio stations as well as a 20% interest in Canal+Polska's pay television station. To top it off, the company plans to take a 10% stake in the new digital TV station being launched this fall by Canal+ and @Entertainment.
In addition to the 9 million new shares Agora plans to offer, the company also intends to give 2.3 million additional shares to employees. Agora currently has 44.14 million shares, but it plans to increase it share capital - and the corresponding number of shares - by 28% before the offering takes place. The company plans to use the cash raised for new printing houses as well as additional investments in radio and television, Agora said in a statement.
The company would not disclose any more details about the offering, saying the issuing prospectus would be ready in a few months. CS First Boston is underwriting the offering.
Agora's only publicly disclosed shareholder is Cox Poland Investments, a subsidiary of the U.S.'s Cox Enterprises, with 13%. According to Forbes magazine, Cox's sales in 1997 were $1.6 billion.
For its part, AMS's stock has performed well since the company began trading April 23 at zl. 43 a share. In its IPO, the company originally sold 1.25 million shares at zl. 34 each, marking a 26.5% increase from the time of the sale to the actual listing.
