29/01/2010 - Enemona AD (E4A) – preferred shares offering in development

In relation to the forthcoming capital increase of the public company Enemona AD through an issue of preferred shares, presented here is a resume of the company and the issue itself. 

Enemonaisamongtheleadingholdingcompanies, operatinginthefieldofengineering, constructionandassemblyworks, as well as energyandenergy efficiency projects. The first group of activities includes project management and engineering, construction of new and reconstruction and modernization of existing power plants; the second one consists of trading in electricity and natural gas and development and implementation of energy efficiency projects. Enemona’s clients are industrial and natural gas distribution companies, municipal and state-owned buildings, energy companies, as well as other investors operating in the field of energy and energy efficiency. 

EnemonaisaleadingcompanyinthesphereofenergyefficiencybasedonthesocalledESCO contracts.

Enemonahasthereputationofoneofthebestcompanies, tradedonthestockexchangeinBulgariawithitscorporateethics, publicityandinvestorrelationspolicy. The company first presented to the Bulgarian Stock Exchange in 2005 with its bond issue for the amount of BGN 2.5 million. In 2007 Enemona came up with an IPO, offering shares at the amount of BGN 33 million. The issue was oversubscribed 30 times, making one of the most successful IPO’s in the Bulgarian capital market history. At the end of 2009 and the beginning of 2010 Enemona realized the first issue of warrants in Bulgaria. Each warrant gives its owner the right to participate in capital increase of the company within the next six years. Within this period each warrant may be exercised and a common share may be purchased against it at the price of BGN 18.50. Every capital increase that may eventually take place during the term of validity of the warrants would automatically change their exercise price. Following the end of the preferred shares capital increase, Enemona will not only be the biggest engineering and energy company traded on the BSE but also the only one presented by three non-debt issues – common and preferred shares and warrants.

Consideredfromtheperspectiveofitspositioningonthecapitalmarket, Enemonaispartof the leading stock exchange index SOFIX, as well as of the wider one BG40. It is also among the 20 most liquid positions on BSE. Its shares are included in the portfolio investments of considerable institutional investors. In its efforts to secure liquidity of the shares, Enemona chose to use a market maker with the obligation to keep bids and asks at any time.

Theissuedescribedhereinhasthefollowingcharacteristics: number of shares - 5 966 800 preferred shares; issue price – BGN 9.92;  preferential, guaranteed, cumulative annual dividend to the amount of 10 per cent of the issue price of one preferred share or 0.992 BGNfor the period of 7 years. Conversion into common shares at the end of year seven is mandatory. Every common share entitles its owner to receive one right. For the subscription of every preferred share the shareholders need to exercise two rights. Initial date for trading in rights on the Exchange is January 25 and final date is February 08. Date of the auction for the unexercised rights shall be February 24.

See the full text HERE.