Łód�-based Magellan, an institution which offers financial products and services to firms from the medical sector, was the Warsaw Stock Exchange's 54th debutant this year. It issued 1.3 million shares at a price per share of zł.42, with the aim to take zł.54.6 million from its IPO. A total of 20 percent of the firm's shares were on offer, while its main shareholder, Polish Enterprise Fund IV - which is managed by Enterprise Investors - kept 76 percent. The remaining shares are held by Magellan's management.
The IPO is meant to fortify Magellan's leadership position in its sector and strengthen its investment capital. This will be used to offer long-term loans to hospitals which want to finance investments or restructure debt. Funds from the IPO are designated for use by the end of Q1 2008.
"The two sectors which guarantee the greatest profit in the market are the financial and medical sectors," commented Dariusz Strojewski, the president of the company's board.
The company, which has been active in its field since 1998, has 600 regular clients including public hospitals and independent public healthcare facilities (SPZOZs) as well as medical suppliers, producers and distributors. It now plans to extend its activity to other public sectors outside of the medical market, such as local governments.
"The zł.42 valuation is high, but the company is worth the money," Marcin Bogucki, an analyst from brokerage IDMSA, told WBJ, noting the prospect of an increased return on the investments Magellan made last year. Still, he warned of possible instability when the company extends its operations and enters other branches.
By the end of the week, Magellan's share price had risen to around zł.46. In Q1 of 2007, the company saw zł.15 million in revenues and zł.6.4 in net profit, marking y-o-y growth of 36 percent and 27 percent, respectively.
