Teta's successful IPO

The shares of Polish software producer Teta SA debuted on the Warsaw Stock Exchange (WSE) last week at zł.12.20, which was about 20 percent higher than the issue price.

In the November subscription, Teta SA offered 500,000 new shares and almost 2.5 million existing shares at zł.10.20 each. The latter were sold by Enterprise Investors, which had an 80-percent shareholding in Teta before the offer. Smaller investors, whose demand considerably exceeds supply, bought a total of 1,747,000 shares whereas institutional speculators purchased 1,333,000. The reduction in the open tranche, which included almost 1.75 million shares, was 74.5 percent.

From the IPO, Teta has earned more than zł.5 million, which will be spent mostly on launching new products on the market. The company's priority is Teta Constellation, which will absorb zł.1.7 million of the issue funds. Teta Constellation is the firm's newest Enterprise Resource Planning (ERP) software, which supports companies' management. Teta estimates that the product will increase its share on the medium-sized and large businesses ERP systems market to 30 percent.

The company estimates that its net profit this year will reach zł.4.4 million, compared to zł.3.4 million in 2004. It forecasts that revenues will increase from zł.33.3 million in 2004 to zł.35.6 million in 2005. Teta SA is the 33rd company to debut on the WSE this year.