November 30, 2010

Polish Milkiland sets maximum share price at US$14.57

Milkiland said Friday (Nov 26) it had set the price of the shares at PLN33.78 (US$10.81), offering the shares at a maximum price of PLN45.50 (US$14.57).

Dairy processor Milkiland has set the price of the shares it is set to float in Poland, although the level has fallen below the maximum the company wanted to achieve.

The company, which has its head office in the Netherlands but has operations in Russia and the Ukraine, is looking to list in Warsaw to raise funds for expansion.

The value of the offering will be PLN236 million (US$76.8 million) but the formal setting of the share price means Milkiland expects the proceeds from the float will be around PLN211 million (US$67.55 million), against an earlier estimate of PLN284.5 million (US$91.08 million).

Once the listing is complete, 22.4% of Milkiland shares will be floated. The majority of the business – some 72.8% – will be held privately by Anatoliy Yurkevych and Olga Yurkevich.

"During the road show, we had tens of meetings with representatives of Polish and international institutional investors who positively received perspectives of the Milkiland's development strategy and dairy markets in Russia and Ukraine", said Milkiland CEO Vyacheslav Rekov, who will see his 6% stake in the company fall to 4.8% after the IPO.

"I am sure that thanks to the IPO proceeds the company enters a path of more rapid growth. We are also looking forward to working with new Milkiland's shareholders," Rekov added.