Czech Internet firm considers IPO

Czech Internet firm considers IPO

	Published : Thu, 21 Jun 2007 13:19 By : Agencies Print this Story

PRAGUE (Thomson Financial) - Dutch based Czech Internet portal Centrum.cz Holdings B.V. is considering launching its shares on the Prague stock exchange or another bourse in central Europe, the firm's founder and co-owner Oldrich Bajer told Thomson Financial.

Bayer said Centrum's minority shareholders, private equity funds Intel Capital and Barings Communications Equity, will look to sell their stakes in the company and that an initial public offering (IPO) is being considered as an option.

Bajer declined to reveal details of Centrum's shareholders' structure but said he and the other founder of the company Ondrej Tomek hold a majority stake.

Overshadowed by the larger bourse in neighbouring Poland, the Prague stock exchange has seen no new listings this year and only two in 2006, with some of Europe's lowest interest rates persuading companies to borrow direct from banks instead.

A booming economy and rising central bank rates mean companies are beginning to seek other sources of capital as they look to expand more aggressively abroad.

'We are doing alright in the Czech Republic and Slovakia and we may want to expand abroad,' Bajer said when asked how Centrum would use the proceeds from an IPO.

Bajer said the floatation would take place at earliest in the middle of 2008.

Centrum.cz Holding B.V. groups together Czech Internet portal provider NetCentrum s.r.o and Slovak Internet portal provider NetCentrumSK s.r.o.

Of the two, the Czech firm brings about 90 pct of the holding's revenues, with revenues rising 63 pct last year to 367.6 million crowns. Net profit reached 15.8 million crown, up from 2005 loss of 6.3 million crowns.

The favourable results were caused by a significant interest in Internet advertising, Bajer said.

Centrum.cz is the third largest Czech portal in terms of number of visitors.

jana.mlcochova@thomson.com +420 222 191 108

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