The IPO of the local producer of industrial minerals Kaolin was overbid 3 times and the sale price reached BGN 13.5 per share, against the threshold of BGN 12.5. The share price reached during the IPO sets up the company’s market capitalisation at BGN 338mn (EUR 173mn). Secondary trade with shares of Kaolin is expected to start towards the end of May. The mineral extractor collects BGN 61.8mn through the IPO aimed at raising the shareholders’ capital by 22% to BGN 25mn. The main shareholder, Alpha Finance, will offer additional shares accounting for 4% of the increased capital upon the launch of the secondary trade. Institutional investors have filed 82% of all bids while foreign companies will get 53% of the newly issued shares.

Last year, the sales of Kaolin increased by 28% to BGN 90.1mn. The net profit rose by 30% to BGN 9.43mn. Kaolin projects a sale increase by 20-30% this year. The value of the company exports amounted to 58% of total sales last year. The company operates one of the biggest quartz sand deposits on the Balkans. It is located in Serbia and has extraction capacity of over 30 million tonnes.