Uncertainty over LPP new share issue pushes its value down

Shares in domestic clothes retailer LPP fell sharply on Tuesday in response to the firm's planned share issue, traders said. By 1010 GMT the company stock had lost 5.5% after the fast-growing textile firm, dubbed Poland's "Gap" by analysts, said it would issue up to 280,000 shares to finance expansion. "The new share issue will probably be offered at a discount to its present market price, which is pushing the stock lower," said Radoslaw Solan, analyst at PKO BP brokerage house. LPP, which sells casual-style clothes with the Reserved label, has 1.5 million shares outstanding. Its market value stands at $90 million. The company, whose share price has jumped five-fold since May 2001, despite a slump in the stock market, said last year it wanted to increase the number of its domestic outlets by half to 65 and open 10 new shops in other East European countries. (Reuters) A.K.