Technological transformation

Pronox Technology, a producer and distributor of electronic equipment, has announced that it will debut on the Warsaw Stock Exchange. The company will offer 1.5 million series-E shares, of which more than a million will be designed for institutional investors, 300,000 for individual investors and 150,000 for Pronox's managers and selected trading partners. The issue price has been set at between zł.15 and zł.20. The firm hopes to enter the floor in mid-May.

Pronox Technology is expecting to gain zł.20 million from the IPO. "From the issue we would like to allocate funding for two goals. The first is the construction of a production and logistics center. The second one is the development of our own brands," said Artur Mrozik, the president of the company's management board.

The firm's strategy foresees the company's shift from a distributor of IT products to a manufacturer of consumer electronics and provider of complex logistics and services solutions. About half of the funds from the IPO would be spent on investments while the lion's share of the funds designated for brand development would go towards strengthening its "Easy Touch" line of electronics. Currently, Pronox's own brands constitute 17 percent of its sales and the firm wants to raise this to 25 percent by 2008.

The Katowice-based Pronox Technology group consists of three companies responsible for production, distribution as well as logistics and service for electronic equipment such as small appliances and computer components. The company produces both in the Far East and in Poland. In 2005 the firm's revenues came in at zł.395.45 million and the company estimates that in 2006 these grew to zł.465.34 million.