Eurocar Plans IPO.
2 February 2008
Eurocar plans to transform itself into Open JSC, and sell 10% via IPO on foreign markets in 2006. The company produces Skoda, Volkswagen and Audi cars. In 2005, Eurocar increased production by 26% to 11.2 ths automobiles. This year Eurocar plans to open a second production workshop, initially planned for December 2005, and increase production by 92% to 21.5 ths automobiles. This will include 17.5 ths Skoda cars. Starting from 2008 Eurocar intends to increase output to 70 ths automobiles. Atoll-holding group (which also owns the insurance company Ukrainian Insurance Group, Euroleasing and Formula Motors, which imports Seat automobiles and Vipcar) owns 68.8% of Eurocar, Iberia Motor Company (Poland) owns 10%. In 9M05 Eurocar posted net revenues of USD 152 mln, EBITDA of USD 3.7 mln, and Net income of USD 4.2 mln. Concorde Capital: The recent sale of 8% of LUAZ for 16 mln has been conducted at P/S ~1. Based on this, Eurocar may raise ~50 mln for its 10% stake, if the announced plans to increase sales in 2006 are implemented – may be less, as Eurocar discloses significantly lower margins than LUAZ.
