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Kulcs-Soft to use proceeds from IPO for developments

Hungarian software developer Kulcs-Soft will use all proceeds from its IPO for developments, CEO and owner Tibor Kulcsár told MTI on Friday after the company's shares were floated on the Budapest Stock Exchange.

Kulcsár, who owns more than 99% of Kulcs-Soft shares, said he would keep the majority of shares in the company at least for the first year, but he could sell even all of the shares on the bourse later.

Kulcs-Soft is a market leader in business management software for smaller companies, for whom SAP systems are too expensive, Kulcsár said.

Kulcs-Soft shares traded at HUF 1,000 on sparse turnover late in the morning on Friday.

In its listing prospectus published a few days earlier, Kulcs-Soft said it aims to keep its existing 40,000 clients and grow further as well as expand on foreign markets.

Kulcs-Soft said it has reached the point where its products, rather than the company itself, has competitors.

The company said it has never paid out a dividend and would reinvest its profits in the mid- to long-term. It declined to give a profit projection or estimate.

Kulcs-Soft had net profit of HUF 28 million on revenue of HUF 370 million in the first half of 2009. For the full year in 2008, Kulcs-Soft had net profit of HUF 18 million on revenue of HUF 608 million. Profit doubled and revenue rose by about HUF 60 million from 2007.

Kulcsár said Kulcs-Soft expects revenue of HUF 800 million in 2009, well over the HUF 720 million target.

Kulcsár said he can see great potential in sales of software products developed for iPhones.

The listing is the second on the bourse this year. Bottled gas company KEG Central European Gas Terminal floated its shares in May.

In 2008, four companies floated their shares on the BSE.(MTI-ECONEWS)