ECONOMY

Promota heads for flotation

Gift and gadget company Promota Hellas plans to raise between 7.8 million euros (2.67 billion drachmas) to 8.6 million euros (2.93 billion drachmas) from its initial public offering (IPO) which kicks off on December 12 and ends December 14. The offering will consist of a public subscription of 1.61 million shares and a private placement of 20,000 shares. The indicative price range has been set at 4.8 euros to 5.28 euros (1,636 drachmas-1,799 drachmas). Set up in 1979, the company has rapidly expanded and currently controls more than 60 percent of the local on-pack promotion market, its founder and managing director, Michalis Dramitinos, told reporters yesterday. Promotional gifts accounted for some 60 percent of total sales last year while the sales of Ferrero-Rocher items came to slightly more than 19 percent. Sales of advertising presents constituted 16.8 percent of the total. In recent years, Promota Hellas has expanded its Internet-based activities, with turnover from this sector expected to account for 25 percent of total sales. Internet sales made up 30 percent of total foreign revenues in 2000. Dramitinos said the company’s decision to set up four innovative websites has given a major push to exports. Promota Hellas was ranked 51st in a list of the 100 biggest export companies in Greece compiled by Stat Bank in 2000, he said. The company has sought to strengthen its supply sources by setting up four offices in Asia. The company’s success is also due in part to its Dorothea database which contains 62,000 items and 18,000 suppliers. Turnover this year is projected at 7 billion drachmas and pretax profits at 1.29 billion drachmas. Funds raised from the IPO will be used to finance the company’s expansion program locally and abroad. Commercial Bank is coordinator and lead underwriter of the issue. Principal underwriter is EFG Eurobank Ergasias.