December 28, 2007

Bulgarian meat firm Mekom to IPO in Jan '08

Bulgaria's meat maker Mekom will perform an initial public offering in the second half of January 2008, according to the United Bulgarian Bank which will lead manage the operation.

Commercial Bank Allianz Bulgaria will act as co-manager of the IPO which will employ a book-building process. Mekom will float 10,682,800 new shares at a minimum issue price of 2.20 levs with a minimum subscription target of million shares. The capital of the company will be increased from 53.4 million to 64 million levs.

The free float after the public offering will be 20 percent. 

Mekom is vertically integrated producer of meat products. It operates breeding farms for sheep, lambs, large cattle, ostriches and rabbits. Mekom, which is licensed for export to the rest of the EU, has earmarked 22 million levs for the acquisition of new production assets and for the expansion of its business in neighbouring Romania.