Atlantic’s profitability of approximately 26 million kuna does not justify the price range of its share from 750 to 960 kuna for the initial public offering, according to institutional investors in the Croatian capital market.
Even if profitability increases to approximately 40 to 50 million kuna during a certain period, as što Atlantic plans, that price will still not be justified. However, investors do not believe that this will prevent the IPO from being successful. Demand remains high and is likely to exceed supply, but a significant jump in the share price is not expected after što it is listed on the stock exchange.
Investors are satisfied that the allocation in the prospectus is clearly defined, which will be ‘pro rata’, meaning it will depend on the payment, so all interested parties can expect a fair distribution. In fact, the opposite occurred during the recent IPO of Magma, when the mechanism for distributing shares was unclear, leaving many investors at a disadvantage. (Lidija Kiseljak)
