INTERVIEW-Czech VGP to offer new and existing stock in IPO

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Czech developer VGP plans to offer investors a combination of new and existing shares when it lists on bourses in Prague and Brussels at the end of this year, its co-owner said on Thursday.

VGP chief executive Jan Van Geet said the initial public offering (IPO) should fetch up to 150 million euros, out of which two thirds will be new shares and one third existing stock held by Belgian financial investor Bart Van Malderen.

"The current capital partner will sell part of his shares, because at the moment he has a little bit more and we want to have equal stakes," Geet told Reuters in an interview.

The current owners will together keep a majority, and the free float should reach around 30 percent, he said, indicating the company would be valued at 500 million euros.

Geet said the company is also considering a lock-up period for current owners of at least a year.

The intention to float the shares should be officially announced in the first third of November, so the IPO could take place by the end of the year, Geet said.

Lead managers are Czech brokerage Patria Finance of KBC Group for listing in Prague, and KBC and ING will arrange the listing in Brussels.

VGP develops and operates logistic parks mostly in the Czech Republic, but also in Slovakia, Hungary and Latvia.

It is considering buying further lots in Romania, elsewhere in the Balkans and Germany to capitalise on rising demand for logistics services prompted by EU expansion in 2004 and 2007.

But in absolute terms, Czech Republic will remain the company's main base in the near future, Geet said.

"The Czech economy still has a great potential in the future. If you look at the share of logistic services on the gross domestic product and compare the ratio to 'mature' countries like Belgium or Netherlands, then we have a lot to catch up with."

Geet added the company planned to pay a dividend from 2009, with maximum dividend yield of 5 percent.

He said capital expenditure was planned at 109 million euros next year and 130 million in 2009.

[PRAGUE/Reuters/Finance.cz]