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Orco plans share sale, listing in Warsaw, Budapest

Orco Property Group SA, a real-estate developer mainly operating in eastern Europe, said it plans to sell new shares and list its stock on markets in Warsaw and Budapest.

Orco Property Group SA, which will remain on bourses in Prague and Paris, said today it's considering selling shares to raise some €100 million ($130 million) to help it expand in eastern Europe. The funds will „not be allocated to one specific project” and the company isn't planning to expand to new countries this year, Orco Vice President Arnaud Bricout told reporters in Warsaw.

The Luxembourg-based developer has focused on central and eastern Europe since it entered the region in 1991 to benefit from booming property prices after the fall of communism. It has properties in places such as Warsaw, Prague, Budapest, Moscow, Berlin, Bratislava and on Hvar Island in Croatia.
Orco wants to attract Polish and Hungarian institutional investors by listing in Warsaw and Budapest. Share offerings on those markets are scheduled for the Q2, Orco said, adding that Citigroup Global Markets Limited and Wood & Co. will be advisers in the transactions.

A share listing in Poland would „bring us a presence on the Warsaw financial market,” which is „a lot more active” than the one in Prague, Orco Senior Vice President Ales Vobruba said in a January 26 interview. The company's shares fell 4.8% to 3,375 koruna as of 1:21 p.m. in Prague. „For Orco, this is a normal way of getting finances for new projects,” Petr Bartek, an analyst at Ceska Sporitelna AS, said in a phone interview today.
He said Orco shares have been „highly valued” since the company in late January announced that its net asset value rose to €92 a share at the end of 2006, from €49.67 at the end of 2005. Orco expects to pay a €1 per-share dividend on 2006 profit, a 25% increase from a year ago, Bricout said today. (Bloomberg)