EN
IPO MEKOM
Mekom to Float BGN 14 mln Preferred Shares
17/03/2010
The Silistra-based company Mekom plans to increase its capital from BGN 56 mln up to BGN 70 mln by issuing 14,000,995 preferred shares with a BGN 1.00 nominal and issue price. The capital increase will be considered successful if at least 140,010 new shares are subscribed (1% of the issue).
The non-voting shares guarantee a cumulative annual dividend of 12% of the nominal value. All the preferred shares will be automatically converted into ordinary ones 5 years from the date of registration of the issue at the Trade Register. Alternatively, they can be converted at any time before that (standing convertibility option), with 1 preferred share being converted into 1 ordinary share. This gives a capital gains upside potential to future shareholders in addition to an attractive guaranteed annual dividend.
Mekom plans to use the proceeds from the planned issue for executing a EUR 17.2 mln investment plan for capacity expansion and reconstruction. Part of the financing will be provided through a bank loan. The project is scheduled for implementation during 2010-2011.
Mekom is the biggest meat-processing company in Bulgaria and the largest Bulgarian meat exporter to the EU.
Expat Capital is a consultant on the IPO, BenchMark Finance has been chosen as the investment intermediary.
Investment Presentation of Mekom, March 2010
17/03/2010
The Silistra-based company Mekom plans to increase its capital from BGN 56 mln up to BGN 70 mln by issuing 14,000,995 preferred shares with a BGN 1.00 nominal and issue price. The capital increase will be considered successful if at least 140,010 new shares are subscribed (1% of the issue).
The non-voting shares guarantee a cumulative annual dividend of 12% of the nominal value. All the preferred shares will be automatically converted into ordinary ones 5 years from the date of registration of the issue at the Trade Register. Alternatively, they can be converted at any time before that (standing convertibility option), with 1 preferred share being converted into 1 ordinary share. This gives a capital gains upside potential to future shareholders in addition to an attractive guaranteed annual dividend.
Mekom plans to use the proceeds from the planned issue for executing a EUR 17.2 mln investment plan for capacity expansion and reconstruction. Part of the financing will be provided through a bank loan. The project is scheduled for implementation during 2010-2011.
Mekom is the biggest meat-processing company in Bulgaria and the largest Bulgarian meat exporter to the EU.
Expat Capital is a consultant on the IPO, BenchMark Finance has been chosen as the investment intermediary.
Investment Presentation of Mekom, March 2010