Gorenje d.d., Slovenia’s biggest exporter, declined in its Warsaw debut after the producer of household appliances raised 16.7 million euros ($23 million) to repay debt.
The shares fell 8.1 percent to 16.70 zloty at 12:36 p.m. in Warsaw today -- after plunging as much as 12 percent after the open. That compared with a reference price of 18.17 zloty ($6.02) set by the Polish bourse on Dec. 27. Gorenje, which fell 3.3 percent to 4.05 euros in Ljubljana to value the stock at 116.1 million euros, is the 23rd company to start trading on the Warsaw bourse’s main market this year.
The Velenje, Slovenia-based company, sold 10.6 million euros of stock to Polish investors at 18.1 zloty a share and an additional 6.1 million euros of stock in Slovenia. Including Panasonic’s earlier purchase of 10 million euros of shares in August, Gorenje has raised 26.7 million euros to pay back debt. It amounted to 475.2 million euros at the end of September, exceeding 5.7 times earnings before interest, taxes, depreciation and amortization forecast for 2013.
“Through the disposal of non-core assets and other operations, we want to reduce this ratio to about 3.5 at the end of 2014 and 3 in 2015,” Peter Groznik, Gorenje’s chief financial officer, told reporters in Warsaw today.
The company is considering swapping as much as 10 million euros in debt for more shares, Groznik said. He excluded an additional public offering in 2014.
The Slovenian company, which has about a 3 percent share in the Polish household appliance market, is the 47th foreign stock to trade in Warsaw. It’s the third company from Slovenia to enter the Polish market after pharmaceutical company Krka dd and Nova Kreditna Banka Maribor dd. Trading in the latter were suspended this month.
Gorenje’s public offer ends this year’s IPOs in Warsaw. The sales raised 5.11 billion zloty, compared with 3.44 billion zloty of shares sold in 2012, according to data published on Warsaw Stock Exchange website.
Polish Dom Maklerski BZ WBK SA was global coordinator of Gorenje’s offer, with Slovenian NLB Group as joint book runner.