ZSE: ‘Fresh Blood’ on the Stock Exchange Attracts Investors

The indices of the Zagreb Stock Exchange slightly declined today, with million kuna turnover achieved only by the shares of Dioki, while the shares of Petrokemija are also in focus due to the announced reduction and subsequent increase of the share capital.

The Crobex index was down 0.41 percent around noon, at 1,851 points, while Crobex10 was down 0.09 percent, at 1,061 points. The regular turnover in shares amounted to 3.44 million kuna, which is approximately 2.5 million less than yesterday at this time.

“At the end of the week, trading on the domestic market usually calms down, and we are witnessing that today as well. The focus of investors is on the shares of Dioki, but the story of the day came from Petrokemija, which announced a reduction in share capital to cover losses from previous years, followed by recapitalization,” says Boris Mažurin, an analyst at the Economic Research Department of Hypo Alpe Adria Bank.

Kutinska Petrokemija has called a general assembly for June 15, which is expected to decide on covering the carried-over losses from previous years through a reduction of share capital, and then on increasing the share capital by up to 187.4 million kuna by issuing new shares.

The general assembly is proposed to cover a total of 324.16 million kuna of losses carried over from 2009, 2010, and 2012 through a simplified reduction of share capital by 334.11 million kuna. The reduction of share capital would be carried out by reducing the nominal price of the share from 270 to 170 kuna, thereby reducing the share capital of the Kutina fertilizer factory from the current 902.1 to 567.9 million kuna. All costs of the capital reduction would be borne by the company.

After that, the Management proposes an increase in share capital through cash contributions “to raise funds for necessary investments that ensure production, restructuring, and financing of current operations.” The increase in share capital would be carried out with a partial exclusion of the preemptive rights of existing shareholders, for a maximum of 187.44 million kuna to a maximum of 755.43 million kuna by issuing at least 551,285 to a maximum of 1,102,569 new ordinary shares in the name, and this through three rounds of subscription. The shares will be offered for sale in a price range of 170 to 228 kuna per share.

The price of Petrokemija shares is currently down 4.7 percent, at 203.08 kuna, with a turnover of 371,000 kuna. The most liquid share is Dioki, with a turnover of 1.07 million kuna. Its price fell by 5.28 percent, to 281 kuna. Following is the share of Ina, with a turnover of 389,000 kuna and a slight price increase of 0.07 percent, to 4,300 kuna. The biggest loser by noon was the share of Varteks, whose price plummeted by 12.65 percent. At the same time, the biggest winner was the share of Excelsa Real Estate, with a price jump of 5.45 percent. The price of HT shares stagnates at 209 kuna, with a turnover of 385,000 kuna so far.