UPDATE 1-Orco plans capital hike, Warsaw/Budapest listings

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Czech real estate developer Orco Property Group said on Thursday it planned to raise around 100 million euros in new capital to fund expansion of its portfolio in central and eastern Europe.

The company said it planned to issue new shares in the second quarter and list its stock in Warsaw and Budapest in addition to Prague and Paris, where the shares are traded now.

"The Warsaw and Budapest listings will be intended to attract Polish and Hungarian institutional investors," Orco said. "The transaction is also likely to include an international institutional offering."

Orco currently has 8.43 million shares in circulation, putting its market capitalisation at 1.05 billion euros.

Citigroup and Wood & Company were appointed as advisors on the deal.

Orco said that based on its anticipated market capitalisation, it could be eligible to be included in the BUX and WIG market indexes in Budapest and Warsaw.

"ORCO will remain listed in Paris and Prague and, assuming completion of the transaction, will be the only company to be listed on three of the main central European stock exchanges (Prague, Warsaw and Budapest), the markets in which ORCO's property portfolio is heavily invested," Orco said.

Its stock was down 1.24 percent after the news at 3,502 crowns, underperforming the market, which was down 0.22 percent.

Orco said it manages assets worth 1.3 billion euros. It earlier reported a of net asset value per share 92 euros at the end of 2006.

[PRAGUE/Reuters/Finance.cz]