June 18, 2018 / 2:45 PM / a month ago

Bulgaria's Gradus raises $47 mln on first day of IPO

SOFIA, June 18 (Reuters) - Bulgaria’s leading poultry producer Gradus raised 79 million levs ($46.88 million) in the first day of one of the biggest initial public offerings on the Sofia bourse, the lead manager of the issue said on Monday.

Some 43.9 million shares, or 79 percent of the offered new and existing stock, were subscribed at 1.8 levs per share, at the lower end of the price range, exceeding the success threshold, bourse data showed.

The price range was set at 1.8-2.35 levs per share.

Gradus will offer the remaining about 11.6 million shares on Tuesday and will not opt to sell additional 6.6 million shares as it had initially considered, IPO manager First Investment Brokerage House said.

“The big offering as well as the not so favourable market conditions kept the price at the lower end of the price range. It is still a big success for the local capital market,” said Elana Brokerage trader, Dimitar Georgiev. “It is the biggest IPO in the past 10 years,” he said.

The company, also one of Europe’s largest producers of hatching chicken eggs with annual revenue of 246 million levs last year, plans to use the proceeds to expand production.

Trading in Gradus shares is expected to start in the middle of July on the Bulgarian stock exchange. (Reporting by Tsvetelia Tsolova; editing by David Evans)

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