IPO of Atlantic Grupa in the Third Week of October

Atlantic Grupa has convened an extraordinary General Assembly for October 11, based on the earlier decision of the General Assembly to increase the share capital by issuing new shares for the purpose of an initial public offering, at which the price range for the shares in the public offering will be determined.

The initial public offering will encompass 31.01 percent of the shares, with their placement planned for the third week of October 2007, when the price range and the public invitation for subscription and payment will also be announced, assuming that the Croatian Financial Services Supervisory Agency (Hanfa) approves the Prospectus for the issuance of new shares of Atlantic Grupa by then, according to the company’s statement. The public offering will include the subscription of 382,970 ordinary shares of the new issue and the sale of 382,969 ordinary shares of the existing shareholder Svetozar Tedeschi. The period for subscribing to new shares or purchasing existing shares of Atlantic Grupa will last seven days from the opening of the order book.

Atlantic Grupa plans to list the shares on the official quotation of the Zagreb Stock Exchange after Hanfa approves the so-called listing prospectus. According to the decision of the General Assembly, the allocation of the company’s ordinary shares is planned in a ratio of 75:25, with 75 percent allocated for institutional investors and 25 percent for the public. Existing shareholders of Atlantic Grupa with a stake greater than 1 percent (Emil Tedeschi, Lada Tedeschi Fiorio, and the German development bank DEG) commit to a lock-up period – a period during which they will not dispose of their shares in any way, lasting 18 months from the completion of the initial public offering. All other current and future shareholders of the company will not be subject to lock-up obligations and will be able to dispose of their shares at their discretion. The capital raised through the initial public offering of newly issued shares will be used for investment in further development and growth of Atlantic Grupa.