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Purcari Wineries launches 274 mln lei (59 mln euro) IPO in Bucharest

Purcari Wineries launches 274 mln lei (59 mln euro) IPO in Bucharest Purcari Wines

BUCHAREST (Romania), January 29 (SeeNews) - Purcari Wineries Plc said on Monday it launched an initial public offering (IPO) of existing shares on Romania's Bucharest bourse, hoping to raise up to 274 million lei ($73 million/59 million euro) from the sale of a 49% stake.

Purcari Wineries, a public company incorporated under the laws of Cyprus, owns wineries in Romania and Moldova.

The company is offering investors up to 9.8 million of its shares, with a subscription price set at between 19 and 28 lei apiece. Some 90% of the offering will target institutional investors, while the rest will target individual investors, the company said in its IPO prospectus published on the website of the Bucharest Stock Exchange.

Subscription for the shares will run until February 8. The offer is managed by Raiffeisen Bank and Swiss Capital.

The company's main shareholders are Lorimer Ventures Limited, owned by US investment fund Horizon Capital, with 63.5%, Amboselt Universal Inc, owned by Moldovan businessman Victor Bostan, with 30.3% and the International Finance Corporation (IFC), part of the World Bank group, with 6.41%.

Purcari Wineries owns over 1,000 hectares of vines and four wineries in Romania and Moldova - Bostavan, Purcari , Ceptura and Bardar. Its main markets are Romania, Moldova, and Poland.

The company posted sales 94.6 million lei and EBITDA of 31.3 million lei million in the first nine months of 2017.

(1 euro=4.5988 lei)