RPT-Pegas IPO to raise up to 264 mln euros

(Repeats story published late on Monday)

By Jan Lopatka

PRAGUE, Dec 4 (Reuters) - Czech artificial fabrics maker Pegas Nonwovens will raise up to 264 million euros in a planned initial public offering, the company said in a prospectus on the issue released on Monday.

Up to 5.284 million existing and new shares will be offered at up to 50 euros a share, the prospectus said, confirming information from a market source earlier on Monday.

Pegas is the second largest European manufacturer of non-woven textiles after Fiberweb <FWEB.L>, used in products such as nappies.

The price of 50 euros would value the entire company at around 472 million euros after the share issue, according to the prospectus and a Reuters calculation.

The top price would raise up to 101 million euros for the company, before fees, for the 2.02 million new shares it plans to sell. However, the prospectus gave a target of a gross of 50 million euros from the new shares for the company.

Up to 2.575 million existing shares, plus 0.689 million in an over-allotment option, is being offered by private equity fund Pamplona Capital Partners I, which owns 97.5 percent of the company.

One analyst said that the stock looked expensive at the top of the range.

"I think 50 is too much, they will probably not get that," one analyst said. "But it is possible demand will push the price up. I think there will be interest."

Another analyst, who asked not to be named, said there could be concerns about tough competition for Pegas and about its pricing power, as the sector is dominated by one equipment maker on the cost side and by only a few big customers on the sales side.

If the issue is fully subscribed, the stock's free float could be up to 56 percent after the market debut in Prague and Warsaw, expected around Dec. 21. Conditional trading in Prague may start on Dec. 15, the prospectus said.

The shares will be subscribed between December 5 and 14.

The prospectus said the proceeds would be partly used to repay debt.

ING is the global coordinator and bookrunner of the issue.

Current shareholders, including the management, and the company have agreed on an 180-day lock-up preventing them from selling their shares.

The prospectus said Pegas had net profit of 10.6 million euros in the first half of 2006, down from 13.2 million euros in the first half of 2005 due to higher debt servicing.

The figures reported in the prospectus were marginally different from figures reported earlier by Pegas, which were for the firm's Czech operations and not the Luxembourg-based mother company which is being floated. (Additional reporting by Jan Korselt) ((editing by Carol Bishopric; prague.newsroom@reuters.com; Reuters Messaging: jan.lopatka.reuters.com@reuters.net; +420-224 190 474))

Keywords: PEGAS IPO/