Łód�-based Rainbow Tours, one of Poland's largest tourism agencies, is planning to spend the majority of the capital from its upcoming IPO on acquisitions and on raising its profile. The company hopes to gain from zł.18-24 million from the bourse. The firm, which is to debut on the Warsaw Stock Exchange either at the end of this month or the beginning of October, will issue two million E-series shares for zł.9-12 per share, divided equally between individual and institutional investors.
"Investors will gain 16.67 percent of the company's shares, but the main shareholders can't sell more than 200,000 shares each in the next two years, which will prevent the stock from depreciating," said Polonia Net brokerage house's deputy president Robert Kozioł.
"We would like to enlarge our sales network in Poland, invest in our new e-tourism portal and spend more on marketing. In 2009 our marketing budget will be zł.9 million," said Grzegorz Baszczyński, Rainbow Tours' president.
The company will also invest in the further development of its subsidiary in Ukraine, which will enjoy some zł.6 million in capital.
"Rainbow Tours is also planning a couple of acquisitions and we are currently negotiating with three niche operators, who will supplement our offer," Baszczyński added. The company is willing to spend up to zł.9 million on acquisitions.
Rainbow Tours forecasts revenues of zł.140 million this year, after achieving zł.81.9 in revenues in 2006. Net profits are forecast at 3.6 million for this year, while in 2006 profits reached 3.1 million.
