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Appeninn plans bond issue in September, IPO in 2012

Listed real estate company Appeninn aims to launch a forint-based three-year bond issue in September or October in value of HUF 1 billion to finance further acquisition, announced Gábor Székely, chairman of the board for Appennin Holding on Thursday. The company will also start preparations for a traditional IPO expected to take place in 2012.

Appennin Holding aims to increase the value of its assets to HUF 17 billion through its subsidiaries by the end of 2011 by new acquisitions with a required ROA of over 10%, Székely said. Appennin will also start talks with Polish institutional investors next week. The company is considering to list its shares on the Warsaw Stock Exchange in the near future.

The company aims to increase its market share from the current 2.7% to over 5% in the category B office market, Székely said. Appennin has over 90 tenants in this segment.

Appennin has recently launched a campaign of acquisitions to expand its portfolio targeting houses with similar combined functions. Through the acquisition of its peer Rotux Zrt, Appennin’s registered capital and capital reserves increased by a respective HUF 256 million and HUF 891 million. Total capital is now close to HUF 5 billion.

While Appennin continues to focus on its core activity, property management, it has lunched a new business line by founding a new solar energy subsidiary, Appennin Solaris Zrt.  The company will enter the market of small solar power plants with less than 500 kilowatt capacity.

Appennin’s papers are currently being traded in the B basket of the Budapest Stock Exchange but the firm clearly stated that one of the goals of its expansion efforts is to become eligible for a category A listing at the bourse. Székely expects that the transfer to category A will take place in September. The company’s shares have been traded on the BSE since July 2010.

The company had HUF 68.4 million net losses on HUF 1.1 billion sales revenues in 2010. Operating profits were 358 million, while EBIDTA was almost HUF 600 million. Appennin’s majority owner is a Swiss investment company Lehn Consulting AG with a 59.1% share.

Appeninn Nyrt operates as a parent holding company, the subsidiaries hold office buildings and control companies in charge of the maintenance and hiring out of these properties. One of the subsidiaries hires out self-propelled cranes that meet the special demands of the oil industry..