Equity 19 June 2017, 10:37am

Waberer's IPO kicks off on Budapest Stock Exchange

Portfolio

It was known already a few days ago that Waberer’s is finally going public, and it has published the prospectus for its offering, which reveals - among other things - that the offer price range was set at HUF 5,100 to HUF 6,300.

Key details of the IPO

The price range within which offers to purchase may be submitted is HUF 5,100 to HUF 6,300 per Offer Share.
Waberer’s is offering up to HUF 11,735,085 shares.
The Offering consists of an offering of: (i) up to 7,160,973 existing ordinary registered shares of the Company, each fully paid up with a nominal value of EUR 0.35 per share (the ‘‘Existing Offer Shares’’) and, in addition, up to 1,485,876 existing ordinary registered shares of the Company, each fully paid up with a nominal value of EUR 0.35 per share, from the holdings of the Selling Shareholder (the ‘‘Over-Allotment Shares’’), and (ii) up to 3,088,236 ordinary registered shares to be issued by the Company, with a nominal value of EUR 0.35 per share (the ‘‘New Shares’’ and, together with the Existing Offer Shares and the Over-Allotment Shares, the ‘‘Offer Shares’’).
The Offering is structured as: (i) a public offering of up to 1,379,718 Existing Offer Shares, up to 297,175 Over-Allotment Shares and up to 617,647 New Shares to investors other than Eligible Institutional Investors in Hungary (the ‘‘Public Offering’’); an offering of up to 1,465,402 Offer Shares to eligible employees and executive officers of the Group (the ‘‘Employee Offering’’); a private placement of the Offer Shares to eligible institutional investors in Hungary and in other jurisdictions, which is structured as a private placement in the United States to certain QIBs (“Institutional Offering").
The offer period, during which investors may submit purchase orders for the Offer Shares, commences on 19 June 2017 and is expected to end on 29 June 2017.
The Offer Price and the final number of Offer Shares to be sold will be announced and published on the Publication Places on or about 29 June 2017.
The Company and the Selling Shareholder have agreed to certain lock-up arrangements for a period from the date of the Placement Agreement to the date 12 and six months, respectively, from the first day of trading of the Shares on the Budapest Stock Exchange (BSE).

What is the money needed for?

Assuming that the shares are sold at the middle of the above range, net proceeds are expected at EUR 197.2 million (over HUF 60.7 bn), of which the Selling Shareholder will receive around EUR 152.2 mn (cc. HUF 46.9 bn) and the Company EUR 45 mn (cc. HUF 13.9 bn). Waberer’s is to spend proceeds from the IPO to finance the takeover of Link - one of the largest and fastest-growing logistics and transportation companies of Poland - to the tune of some EUR 32 mn (cc. HUF 9.85 bn), and the remaining proceeds are to be spent on general corporate and working capital purposes.

Why Link?

Link is one of Poland’s largest and fastest-growing road transport and logistics companies. Its business model would greatly complement that of Waberer’s. In March 2017, the company had a modern fleet of over 1,000 (427 trucks and 675 semi-trailers), 956 employees, 75% of whom were drivers. Link operates four transport bases in Poland and one in Ghent, Belgium.

Who are taking part in the IPO?

Citigroup has been appointed to lead the IPO, along with Berenberg (global co-ordinator and joint bookkeeper), Erste Group and Renaissance Partners (joint bookkeepers). Erste Group Bank AG fulfils the role of distributor Hungary and its mandated agent Erste Befektete´si Zrt is acting as sub-distributor.