PrimeTel Cyprus IPO

An IPO from PrimeTel which is a telecom service provider is expected to come to list in the Alternative Market of the Cyprus Stock Exchange.

The IPO from PrimeTel from Cyprus is expected to hit the markets next month.
What are the opening dates of PrimeTel Cyprus IPO?
The PrimeTel Cyprus IPO will open for applications on 9th June and conclude on 18th June 2008.

Where will the capital raised used for PrimeTel Cyprus IPO?
The primary use of the capital raised by the PrimeTel Cyprus IPO will be for funding of business and group expansion drive.

How many shares of PrimeTel Cyprus IPO will be sold through the PrimeTel Cyprus IPO?
A total of 15.1 million shares will be sold through the PrimeTel Cyprus IPO. According to the listing prospectus, 4 mln shares will be offered to subscribers, 7.5 mln to professional investors and a select group of people and 2.85 mln to the public. PrimeTel will also offer 750.000 shares free to staff and executives.

What is the price of the PrimeTel Cyprus IPO shares?
The final price at which the shares will be offered will be determined on June 6 through the book-building method and will apply to all categories. Though the news is that the maximum price for PrimeTel Cyprus IPO shares will be limited to EUR 0.38 per share.

What is the amount of money to be raised by PrimeTel Cyprus IPO?
With the price of 0.38 Euros per share, the IPO size comes to raise around EUR 5.45 million shares.
What are the business valuations, financial results and market outlook for PrimeTel Cyprus IPO?
Laiki Investments is the issue manager while CISCO drafted the prospectus.
PrimeTel reported EUR 14.22 mln in turnover for 2007, up 158% YoY compared to EUR 5.52 mln reported in 2006 of which 8.13 mln originated from business accounts and EUR 6 mln from individuals. The net loss for 2007 amounted to EUR 2.16 mln compared to a net loss of EUR 2.69 mln reported in 2006.
By March 31, 2008, the company’s liquidity amounted to EUR 1.25 mln, but it has short and long term loans amounting to EUR 18 mln. No other information regarding the 2008 profitability forecast or future subscriber targets have been mentioned in the prospectus. The cost of the campaign to seek a listing on the CSE is expected to amount to EUR 200,000.

The company will also offer a total of 26.267.000 free warrants in the ratio of 1 for every 6 shares subscribed, to be exercised in 2011. The issued share capital at present amounts to 142.5 mln shares of EUR 0.17 nominal value.

Let’s see how this PrimeTel Cyprus IPO performs in the markets.

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