May 15, 2018 / 3:01 PM / 7 days ago

Mixed start for Czech bourse's nano cap market

PRAGUE, May 15 (Reuters) - A new Czech market for small company listings had a mixed start on Tuesday, with one firm selling all the stock it had planned, but a second only finding buyers for a third of its offering and another abandoning its listing altogether.

The Prague Stock Exchange (PSE), owned by the Vienna bourse, is hoping the START market, where stock will trade in quarterly auctions, will boost activity amid a dearth of listings.

It is aiming to attract companies valued at up to 80 million euros ($95 million) - a size that makes fundraising via initial public offerings (IPOs) costly in relation to investment bank fees, but is also too large for crowdfunding.

Fillamentum, which makes 3D printing material, sold all of its 28,800 new shares at 825 crowns per share, just off the bottom of a planned range of 816-1,337 crowns.

The price gave Fillamentum a market capitalisation of 106 million crowns ($4.90 million). The firm aims to use its 23.8 million crowns in proceeds to expand production and build a presence in the United States.

“We are satisfied we reached the subscription. It is not too easy to convince investors to do something unknown,” Fillamentum Chief Executive Josef Dolecek said.

Boot maker Prabos plus sold 55,635 shares, out of up to 150,000 offered, at 400 crowns apiece, the bottom of its planned 400-600 crown range. That raised gross proceeds for owner Jaroslav Palat of 22.3 million crowns and gave the company a market capitalisation of 400 million.

Palat plans to reinvest the proceeds into the firm via subordinated debt.

Primoco UAV, a maker of unmanned aircraft, pulled its offering after demand failed to reach the required level.

Primoco had aimed to sell up to 722,154 shares at 250-350 crowns apiece. The firm said it might consider another attempt at a listing in the autumn.

PSE chief Petr Koblic said the new market was ready and there could soon be more joiners. “Today, there were at least five or six issuers here to have a look around,” he said.

($1 = 21.6190 Czech crowns)

$1 = 0.8448 euros Reporting by Petra Vodstrcilova; Writing by Jan Lopatka; Editing by Mark Potter

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