Agrowill Group AB is already the second Lithuanian company to offer shares in Poland

Agrowill Group AB is completing its public offering in Poland and will become the second Lithuanian company to offer shares for trading on the Warsaw Stock Exchange. 
The company has announced that the public offering price is PLN 1.14, which equals LTL 1.
Agrowill Group has set the price in consultation with its financial advisor working in the Polish market and the public offering broker, after taking into account the existing and expected situation in the Polish market and international capital markets. 
The public offering results will be published under the procedure defined in the prospectus following the distribution of shares among institutional and retail investors by the applications submitted. 
Vladas Bagavičius, chairman of the Board of the company, claims that management of Agrowill Group conducted long discussions on whether to proceed with the public offering at the price of LTL 1 per share. Although this price was different from the one planned, the company took the decision to offer the shares, especially after considering that such a price was determined by the attitudes of investors in the Polish market. The public offering price of Agrowill Group was mostly influenced by the practices of Ukrainian agribusinesses to set especially low share sale prices.
“Investors on the Warsaw Stock Exchange compare similar businesses with Ukrainian companies where the risks and the long-term viability of the business have not yet been tested. Thus the conditions of their operation are not fully clear yet. So, Polish investors expect to purchase such shares with especially big discounts via these companies’ public offerings. For this reason, the shares of Ukrainian agribusinesses on the Warsaw Stock Exchange are sold at a much lower price than those of Western agricultural companies in respective markets”, claims V. Bagavičius.
According to him, however, the entry into the Warsaw Stock Exchange will create value added for the shareholders and increased liquidity, while the proceeds will be used by the company to speed up the implementation and boost the efficiency of its investment programmes.
On the other hand, the relatively small number of new shares offered also reflects the approach of the shareholders not to lower fundamentally the “weight” of shares issued or to issue new shares, as the shareholders see an attractive outlook for the operations and steady growth of the value of Agrowill Group.
V. Bagavičius maintains that attention to agriculture is on the increase in all world regions: growing market demand and falling supply will inevitably determine high demand for crops and other agricultural products in the market in 2011. Last year was successful to Agrowill Group, as the company earned LTL 6,300,000 in profit.

For more information, please contact:
Vladas Bagavičius, Chairman of the Board of Agrowill Group AB, tel. +370 610 31807

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