Minsk Sparkling Wines Plant Uses IPO Proceeds to Repay Credits
OREANDA-NEWS. November 12, 2012. OJSC Minsk Sparkling Wines Plant, which held people’s IPO early this summer, has channelled the proceeds into repaying loans and purchasing equipment, CEO Leonid Kravchuk told reporters.
OJSC Minsk Sparkling Wines Plant sold 164,704 shares at the Belarusian Currency and Stock Exchange from May 2 to June 15, 2012 to the tune of 28.239 billion Belarusian rubles (USD 3.31m), which makes 68.63% of the company’s investment portfolio.
“We were quick to dispose of the IPO proceeds, as we were acting according to a preliminary plan, which was outlined in the emission prospect,” Kravchuk said.
The winery opted for an early repayment of loans drawn in 2008-2009 in order to retool the company. It took 54.7% of the IPO proceeds to take care of loan repayment.
After repaying loans and taking care of some short-term liabilities, the company still has Br8.1 billion (USD 949.590) left in IPO proceeds, which will be invested in equipment purchase.
As previously reported, OJSC Minsk Sparkling Wines Plant held people’s IPO on May 3 – June 15, with a 33% state-owned stake put up for sale (the company is fully owned by the state).
Minsk Sparkling Wines Plant was established in 1978; it makes 80 varieties of beverages; annual output is estimated at 12 million bottles.
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