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EBRD to participate in Polish furniture maker public offering
The European Bank for Reconstruction and Development (EBRD) is participating in the underwriting syndicate for the initial public offering of Fabryki Mebli "Forte" S.A. (FM Forte), a Polish furniture company. The EBRD also intends to purchase 20 per cent of the shares being offered to the public and expects to hold at least 7 per cent of the company’s total shares once the offer period has ended.
Alain Pilloux, Director of the EBRD’s Poland team, said: “Through our participation the EBRD achieves several important goals: we can catalyse other private sector investors and help the company raise funds to continue its rapid growth. We are also supporting Poland’s capital market development through our participation in a commercial underwriting syndicate”.
FM Forte manufactures box furniture including shelves, desks and wardrobes for the home and office, upholstered furniture and fittings for the kitchen, which are sold in Poland and abroad. The company has grown quickly to become one of the largest Polish furniture manufacturers, with over 6 per cent of the domestic market. It was formed following the purchase of two loss-making state-owned factories in 1992 and 1993 by Mr Maciej Formanowicz, a Polish national, and Alno Moebelwerke GmbH, a German furniture company. More than half the sales are exported, and main foreign markets include Germany and the countries of the former Soviet Union.
Via this offering, which is being lead managed by the Warsaw based Creditanstalt Securities S.A., 35 per cent of the company is being made available to Polish and foreign investors. PLN [50] million (US$ XX equivalent) is expected to be raised and proceeds will be used to upgrade and expand production capacity, develop the company’s distribution network, reduce debt levels, and improve environmental performance.
FM Forte’s new shares are expected to be listed on the Warsaw stock exchange.
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