July 25 (SeeNews) - Fintel Energija, the Serbian subsidiary of Italy's Fintel Energia Group, launched on Wednesday an initial public offering (IPO) on the Belgrade Stock Exchange, the Belgrade bourse said.
The company aims to raise 27.5 million euro ($32.2 million) on the stock exchange through the issue of 6.5 million regular shares with a nominal value of 500 dinars ($5.0/4.2 euro) apiece, the Belgrade Stock Exchange said in an e-mailed statement.
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The subscription period is 90 days and after its expiry, the shares of Fintel Energija will be included in the Prime Listing segment of the Belgrade Stock Exchange, the bourse said.
The IPO will be considered successful if at least 1.5 million Fintel Energija shares are subscribed, with the first trading of shares in the company expected in November, the Belgrade Stock Exchange noted.
"This is an extremely important day for the domestic capital market, economy and citizens. For the first time, a private company operating in Serbia collects funds for its future business activities through the capital market," the executive director of the Belgrade bourse, Sinisa Krneta, said in the statement.
The transaction represents the first IPO on the Belgrade Stock Exchange since 1940. Set up in 1893, the Belgrade stock market ceased to exist in 1953, when it was formally abolished by the Yugoslav government. The 32 biggest banks of the former Yugoslavia re-established the bourse in 1989. In 2000, the stock market started the secondary trading of shares in privatised companies.
"We hope that now that Serbia has officially established and tested a business ecosystem that will facilitate the raising of capital, other businessmen and market players will recognise the possibilities of financing their businesses through the Belgrade Stock Exchange," Krneta said.
Italy's Fintel Energia Group is implementing wind energy projects in Serbia through MK Fintel Wind, a joint venture with Serbian vertically integrated conglomerate MK Group.
MK Fintel Wind was set up in 2008 and already operates two wind farm in Serbia, with a combined installed capacity of 16.5 MW.
($ = 0.855097 euro)