Price of T-HT shares 265 HRK

( Oct 02, 2007 ) Croatian citizens will buy HT-shares at the price of HRK 265 per share decided the Croatian Government at the session of October 1.
Due to large interest share packages from citizens with priority rights, will be reduced by about 53 to 54 per cent, said Deputy Prime Minister, Damir Polančec after the session. 358.406 citizens subscribed and within IPO 25 per cent of shares are intended for them.
Average payments were 34.043 HRK and this average package will be reduced to about 15.100 HRK and at the price fixed today 56 HT-shares can be bought for that amount .
Croatian citizens will have priority rights to subscription of shares up to a maximum value of 38.000 HRK, and due to expected reduction of package this amount will be reduced to about 17.000 HRK. Deputy Prime Minister, Damir Polančec explained "cutting" of share packages for about 54 per cent by surprisingly high response to the invitation to buy shares, considering that total demand exceeded the supply of HT-hares by 5 to 6 times. He pointed out that the amount of 38.000 HRK was only a proposed maximum of share package bought at special conditions and that the decision on reduction was adopted to enable citizens to achieve profit.(HINA)

"We defined such price on purpose, so that the citizens may have the opportunity to make profit on capital market", said Deputy Prime Minister Polančec, and added that for all investors the share package will be proportionally reduce for about 54 per cent. The Government decided this evening that 65 per cent out of 7,5 per cent of HT-shares intended for institutional investors will be allocated to foreign and 35 per cent to local investors. Deputy Prime Minister Polančec said that the demand foreign investors reached the amount of 20,2 billion HRK, over 20 times exceeding the value of shares intended for institutional investors , and the demand of local institutional investors of 4,7 billion HRK, 9 times exceeding the offer. He stressed that 36 per cent of foreign institutional investors are large American funds.
"Croatian capital market thus becomes one of the strongest in the region which also is a proof that citizens believe in this model, and trust the Government and the company (HT)", said Polančec. Once again he reminded that HT-shares will be listed at the Zagreb and London Stock Exchange on Friday, October 5. Except for demand of the institutional investors and citizens and at special conditions (to 38.000 HRK), citizens also submitted 2.024 offers exceeding the amount of 38.000 HRK, so total demand for HT-shares reached 37,4 billion HRK which is 5 to 6 times above the offer. Allocation of shares made today of 32,5 per cent of HT-share offered at the IPO, about 85 per cent directly or indirectly is bought by local investors, said Polančec.
Prime Minister, Ivo Sanader also expressed his satisfaction with the response at the HT-IPO . He said that such interest reflects positive growth of the standard of living of the Croatian citizens, change of shareholder culture and strengthening of the Croatian capital market. He added that IPOs of the shares of INA and HT the new privatization model was introduced in Croatia and that this Government "significantly changed relationships in the privatization". "After INA and HT nothing will be the same anymore", said Sanader, and added that his Government "recognized all faults of former Governments in privatization" and learned " well the lesson from them". Premier also warned all investors about the risks, earnings and losses from the shares. Sanader announced new privatizations by initial and secondary IPOs soon, both for institutional and private investors
Government passed a decision at this evening's session that a part of funds raised from the sales of HT-shares of 5 billion HRK, will be paid to the Pension fund. Out of that amount, 3,45 billion HRK will be used to repay debt to retired citizens in this year, 1,1 billion HRK in 2008 and 450 million HRK in 2009. Minister of finance, Ivan Šuker said that the rest of 2 billion HRK will be used to finance this year's state deficit. (HINA)