Croatia’s Villa Dubrovnik raises 4 mln euro in new share issue

The company has successfully issued 72,254 new shares with a par value of 13 euro per share at an issue price of 55.36 euro per share, it said in a filling to the Zagreb bourse on Wednesday.

The new shares were subscribed by pension fund management company Erste on behalf and on account of nine pension funds that it manages.

After the recent transaction, the company is bolstering its equity capital by about 939,300 euro, bringing it to around 11.73 million euro. The remaining 3 million euros raised will be allocated to its capital reserves.

The new shares will be listed on the Zagreb bourse after their registration by the commercial court in Dubrovnik.

The company did not mention how is it going to use the funding but in July the hotel operator said on Thursday it plans to invest between 15 million euro and 18 million euro in an overhaul of the interior of its hotel Villa Dubrovnik.

Pension funds run by Erste own more than 98% of the company’s equity capital, bourse data showed.

The company's shares last traded on September 27 at 25.80 euro.

($ = 0.949 euro)