Amarad to sell 14-15% stock through IPO

The price for the IPO has not yet been determined, but IFB officials said the value will be lower than other companies with similar activities, such as Condmag Brasov, Dafora Medias and Armax Gaz Medias. Condmag, Amarad’s main competitor, has €42.4 million in market capitalization, while Dafora and Armax were worth €95 mln and €38 mln respectively.

IFB Finwest’s General Manager, Octavian Molnar, said the IPO will be launched at a better moment for the capital market, which was subject to a sharp decline in the past few months. “There is no reason to rush this, because Amarad is not listing because it needs financial resources, but rather because for the image gained by a listed company,” Molnar said.

Amarad’s turnover amounted to €44 mln by the end of 2006, 2.4 times higher than in 2005, and €2 mln in net profits, 50 percent higher year-on-year, according to the latest financial data available. Its most significant shareholder is the company’s General Manager, Miron Cheregi, with 30 percent of the stock. Investment fund MEI is also among the shareholders, with a participation exceeding 5 percent.