Allotment certificates with respect to TU Europa S.A. shares of the new issue heve been admitted to trading on the Warsaw Stock Exchange on Friday. The start of trading closes the extremely successful process of capital increase through a SPO. The big interest of investors has proven the attractiveness of the offering.
"We are very glad about the results of the issue. Under the transaction, investors purchased new and existing shares for nearly PLN 0.5 billion. The capital raised by the company and free float in excess of 33% significantly improve the strength and attractiveness of the Company - the partner of leading Polish banks and financial institutions. The investors' reactions during the roadshow and directly following the closing of the offering are a proof of appreciation for our activities so far and a sign of trust in the ambitious development plans of both Europa companies," said Jacek Podoba, President of the Board of TU Europa S.A. and TU na Życie Europa S.A.
Since 30 September, stock exchange investors have had the possibility to buy the existing shares of TU Europa sold by Getin Noble Bank which so far has been among TU Europa shareholders. Additional 1,570,400 of the existing shares were added to free float and within a couple of days, trading in these shares has resulted in an increase in TU Europa share price to its all-time high of PLN 195 (closing price as at 6 October), up by 28% on the selling price.
TU Europa will use the capital raised from the issue to reinforce its position as bancassurance* leader in Poland and to develop its range of products offered with mortgage loans, cash loans, credit cards, as well as investment-type products.
The Europa Group has been growing dynamically for many years now. In 2009 TU na Życie Europa SA was ranked as No 2 on the Polish life insurance market (gross premiums written in accordance with PAS; source: KNF data for 2009).
As a result of its consistently followed strategy, the EUROPA Group closed 2009 with record net profit exceeding PLN 120m (consolidated net profit in accordance with IFRS) while its effectiveness in 2009 measured as return on equity (ROE) reached 38.6%, well above the ROE for the entire insurance sector (18.45%, in accordance with [PAS]/[IFRS])**. The effectiveness of the company's operations was also reflected in the results of the first half of 2010 when the EUROPA Group reported further impressive growth. Net profit reached PLN 70.3 million (in accordance with IFRS), up by as much as 25% on the corresponding period of last year (PLN 56.2m in accordance with IFRS). New sales in the first half of 2010 exceeded PLN 2.96bn in gross premiums written (in accordance with PAS)***, nearly approaching the PLN 3bn of premiums written in the entire last year.
*In terms of diversity and range of products offered
**KNF data for 2009; results of the sector in accordance with PAS, results of the Group in accordance with IFRS. ROE for the entire sector and the Europa Group calculated using the formula: return on equity = ratio of annualized net profit for a given accounting period to equity at the beginning of the accounting period.
***The Group offers products which do not transfer a significant insurance risk (certain products with a guaranteed rate of return and
unit-linked products); therefore, such products do not meet the insurance contract definition under IFRS 4 and have been classified
as investment contracts measured in accordance with IAS 39 requirements. Polish Accounting Standards do not contain such restrictions and therefore data on gross premiums written under PAS fully reflect the sales generated by the Group.