The Greek Experience IPOs in GREECE. IPOs in Greece – The greek Experience CONTENTS PART I -...

IPOs in Greece – The greek ExperienceIPOs in Greece – The greek Experience

CONTENTS

PART I - General Info for listing procedures & markets

PART II - Legislation and procedures of an IPO

PART III - Index of contents of the Prospectus

PART IV - Statistics

PART V - Case Study – Piraeus Port Organisation

PART IPART I

GENERAL INFO FOR GENERAL INFO FOR LISTING PROCEDURES LISTING PROCEDURES

& MARKETS& MARKETS

Part I - General info for listing procedures and marketPart I - General info for listing procedures and market

ATHENS STOCK EXCHANGE is structured in three markets:

1. Main Market• large and middle cap companies

2. Parallel Market• small cap companies

3. New Market• dynamic and Innovative companies

4. Greek Market for Emerging Capital Markets (EAGAK)• Companies from Emerging Markets


Listing Requirements for the Main MarketListing Requirements for the Main Market

• Paid-up Capital: min 11.74 million EURO for the fiscal year, proceeding the listing admission

• Publication of Financial Statements: last 3 fiscal years

• Tax Audit: financial statements audited by chartered auditors

• Free float: min 25% distributed to the public

• Underwriter• Prospectus


Listing Requirements for the Parallel MarketListing Requirements for the Parallel Market




• Free float: min 20% distributed to the public



Listing Requirements for the New Market (NE.X.A)Listing Requirements for the New Market (NE.X.A)




• Free float: min 20% distributed to the public blocking of shares : 80% in first year of listing 50% in the second and third year of listing min 100,000 shares of value of at least 0.734 mil EURO


PART IIPART II

LEGISLATION AND LEGISLATION AND PROCEDURES OF AN IPOPROCEDURES OF AN IPO

• Stage 1

• Stage 2

• Stage 3

approval of the Prospectus before the initial trading to the Stock Exchange approval of the admission of the company’s shares to the Stock Exchange approval of the company’s shares trading on Stock Exchange

Part II - Legislation and procedures of an IPOPart II - Legislation and procedures of an IPO

According to the Greek legislation, there are three stages for a company in order to go public:

Stage 1Stage 1 Approval of the Prospectus before the Approval of the Prospectus before the initial trading to the Stock Exchange initial trading to the Stock Exchange


•The main Underwriter provides the necessary documentation to the Stock Market Authorities. •The Stock Market Authorities examine the documentation with a view to checking the fulfillment of the requirements and approve the prospectus. •The Stock Market Authorities inform the Capital Market Commission about the approval of the prospectus. •The company that goes public and the main Underwriter inform the Stock Market Authorities about the period of implementation of the IPO.


SSTTAAGGEE 11 –– AAPPPPRROOVVAALL OOFF TTHHEE PPRROOSSPPEECCTTUUSS

Prospectus’ approval

IPO Documentations Informing (Prospectus’s approval) (Prospectus’ approval) Informing (period of implementation of IPO) Brokerage Agreement

UNDERWRITER

STOCK MARKET

AUTHORITIES

CAPITAL MARKET

COMMISSION

COMPANY (ISSUER)

Stage 2Stage 2 Approval of the admission of the Company’s Approval of the admission of the Company’s shares to the Stock Exchangeshares to the Stock Exchange


•The main Underwriter provides the necessary documentation to the Stock Market Authorities. •The Stock Market Authorities examine the documentation with a view to checking the fulfillment of the requirements and approve the admission of the Company’s shares to the market.


SSTTAAGGEE 22 –– AAPPPPRROOVVAALL OOFF TTHHEE AADDMMII SSII OONN TTOO SSTTOOCCKK EEXXCCHHAANNGGEE

Listing approval

Listing Documentations (Listing approval) Brokerage Agreement Listing Agreement

UNDERWRITER

STOCK MARKET

AUTHORITIES

COMPANY (ISSUER)

Stage 3Stage 3 Approval of the company’s shares trading Approval of the company’s shares trading on Stock Exchangeon Stock Exchange


•The main Underwriter provides the necessary documentation to the Stock Market Authorities. •The Stock Market Authorities examine the documentation with a view to checking the fulfillment of the requirements and approve the trading of the Company’s shares to the market.


SSTTAAGGEE 33 –– II NNTTII TTII AALL SSTTOOCCKK TTRRAADDII NNGG

Trading approval Beginning trading

Trading Documentations Trading admission (Trading approval) Brokerage Agreement Registry agreement

UNDERWRITER

STOCK MARKET

AUTHORITIES

STOCK MARKET

COMPANY (ISSUER)


TIMETABLE OF THE IPO STAGES

STA

GE 1

5 d

ays

Submission of the necessary IPO documents to the Stock Market Authorities (approval of the Prospectus)

End of the period in which the IPO can be implemented

STA

GE 2

No fi

xed t

ime

Submission of the necessary listing documents to the Stock Market Authorities

Approval of the company’s shares to the Stock Exchange

STA

GE 3

15

days

Submission of the necessary trading documents to the Stock Market Authorities

Approval of the company’s shares trading to the Stock Exchange. Inititiation of trading

PART IIIPART III

INDEX OF CONTENTS OF INDEX OF CONTENTS OF THE PROSPECTUSTHE PROSPECTUS

Summary data of the issueSummary data of the issue

Part III - Index of contents of the ProspectusPart III - Index of contents of the Prospectus

• the number and the type (common, preference, etc.), of shares before the issue

• the total number of shares before the issue • the number and the type of the new shares • the total number of shares after the issue • the book value of the share • the disposal price of the share • the total income of the issue • the total income of the issue

Summary economic aggregatesSummary economic aggregates


• financial data of the company of the past 3 or 5 years

• information about:

if there has been any change at the amortization method or the method of evaluation of stock and other assets

if there has been any account entries which are mentioned by the Chartered Accountants and are affecting the operating results

1.1. Information about the compilation of the Information about the compilation of the Prospectus and the company’s auditorsProspectus and the company’s auditors


• names and addresses of the responsible persons for the compilation of the Prospectus from the company and the underwriter of the issue

• information about:

the regular and the unscheduled financial chartered auditors the legal auditors the tax assessors

• conjunctions of the company’s auditors

2.2. Share-Capital Increase and the procedure of Share-Capital Increase and the procedure of disposal of the new sharesdisposal of the new shares


• general

• procedure of disposal of the new shares

• underwriters - cost of the issue

• destination of the new capital

3.3. Share-Holders Rights Share-Holders Rights


• general

• taxation of the dividends

4.4. Information about the Company (the issuer)Information about the Company (the issuer)


• general information • historical records • description of the company’s business activity • production of certain goods - production process • sales network and distribution network • property assets - guarantees and real securities • development of the capital stock • equity capital - book value of a share • Management - Administration Department


• participation of management and main shareholders at the Board of Directors of other companies

• organizational chart • personnel • investments in last 5 years • shareholders • equity capital - book value of a share

5.5. Data of the business sector of activity Data of the business sector of activity


• general data of the business sector of activity

• competition - prospects of the market

• the company’s position in the sector

6.6. Financial Statements of the company’s activity Financial Statements of the company’s activity


• the company’s activity • business development - operating results • financial costs • distribution of profits before depreciation • financial status analysis - long term liabilities

to banks to suppliers

• sources and uses of capital • cash flow

7.7. Associated companiesAssociated companies


• associated companies

subsidiaries (more than 50% of ownership) affiliated companies (10-50% of ownership) companies with law participation (under 10% of ownership) companies which have common Management or common

Board of Directors with the issuing company

• companies which participate in the issuing company • companies in which the main shareholders or members of the

Board of Directors of the issuing company participate • subsidiaries of subsidiaries and affiliated companies • interfirm trades and transactions

8.8. Sales Expectations - operating results Sales Expectations - operating results expectationsexpectations


• forecast

• of sales • the Balance Sheet • the operating results for the current and the next financial year

This forecast must have been controlled and evaluated by the Underwriter

9.9. Long term Goals - Prospects Long term Goals - Prospects


• targets and strategy

• investment policy

10.10. Dividend Policy Dividend Policy


• the company’s distributed dividends for the past 5 years

• the future dividend distribution policy

The dividend policy has to be expressed as a percentage (%) to the company’s net profit.

11.11. Disposal Price of the ShareDisposal Price of the Share


• rationalize the disposal price of the share in accordance to:

the basic economic aggregates

the property assets

the company’s business sector of activity

PART IVPART IV

STATISTICSSTATISTICS

1.1. Macroeconomic Indices Macroeconomic Indices

Part IV - StatisticsPart IV - Statistics

• Inflation

• 3Months T-Bills

• 3Years T-Bills

• Bank Deposits

• Macroeconomics Data


Evolution of inflation rate (1992-2002)Evolution of inflation rate (1992-2002)

14.40%

12.01%

10.67%

7.92%7.29%

4.71%

3.87%

2.74%

3.91%

3.19%

3.05%

0%

2%

4%

6%

8%

10%

12%

14%

16%

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


Evolution of 3Months T-Bills yield (1992-2002)Evolution of 3Months T-Bills yield (1992-2002)

19.00%

18.00%

15.75%

13.10%

10.20%

12.90%

11.07%

9.19%

5.86%

3.76%4.18%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


Evolution of 3 Years T-Bills yield (1996-2002)Evolution of 3 Years T-Bills yield (1996-2002)

10.20%

9.30%

7.60%

5.90%

4.06%

10.70%

4.28%

0%

2%

4%

6%

8%

10%

12%

1996 1997 1998 1999 2000 2001 2002


Evolution of bank deposits yield (1995-2002)Evolution of bank deposits yield (1995-2002)

5.90%

5.30%

3.40%

2.60%

1.45%

0.95%

5.40%

5.80%

0%

1%

2%

3%

4%

5%

6%

7%

1995 1996 1997 1998 1999 2000 2001 2002


Evolution of macroeconomics data (1995-Evolution of macroeconomics data (1995-2002)2002)

0%

2%

4%

6%

8%

10%

12%

14%

1995 1996 1997 1998 1999 2000 2001 2002Bank Deposit Inflation 3Months T-Bills 3/years T-Bills

2.2. Stock Market StatisticsStock Market Statistics


• Evolution of Greek Stock Exchange General Index

• Evolution of Greek Stock Exchange General Index – annual variation

• Evolution of number of Listed Companies

• Evolution of Market Capitalization

• Evolution of Greek Stock Market Turnover

• Evolution of Greek Stock Market number of trades

• Evolution of Greek Stock Market Indicators


Evolution Of Greek Stock Exchange Evolution Of Greek Stock Exchange General Index (1992-2002)General Index (1992-2002)

Points

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Dec

-92

Jun

-93

Dec

-93

Jun

-94

Dec

-94

Jun

-95

Dec

-95

Jun

-96

Dec

-96

Jun

-97

Dec

-97

Jun

-98

Dec

-98

Jun

-99

Dec

-99

Jun

-00

Dec

-00

Jun

-01

Dec

-01

Jun

-02

Dec

-02


Evolution of Stock Market General Index Evolution of Stock Market General Index - annual variation (1992-2002)- annual variation (1992-2002)

42.71%

5.18% 2.08%

58.63%

85.00%

102.15%

-38.77%

-23.52%-32.56%

-9.38%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

1. Greece locks currency to Exchange Rate Mechanism (EURO) – 16.03.1998

2. Greece request lock of Exchange Rate Mechanism (EURO) – 3.03.20003. Morgan Stanley Capital International classified MSCI Greece Index as a developed market index – 31.05.2001


Evolution of number of Listed Companies Evolution of number of Listed Companies (1992-2002)(1992-2002)

Number

146156

195211

220230

251

283

335

356

375

0

50

100

150

200

250

300

350

400

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002


Evolution of Greek Stock Market CapitalizationEvolution of Greek Stock Market Capitalization(1995-2002)(1995-2002)

Billion EURO

11.8117.45

28.78

67.02

197.54

117.67

96.94

64.75

0

40

80

120

160

200

1995 1996 1997 1998 1999 2000 2001 2002


Evolution of Greek Stock Market TurnoverEvolution of Greek Stock Market Turnover(1995-2002)(1995-2002)

Billion EURO

4.13 5.84

17.03

41.33

172.87

101.42

42.35

24.77

0

40

80

120

160

200

1995 1996 1997 1998 1999 2000 2001 2002


Evolution of Greek Stock Market Number of Evolution of Greek Stock Market Number of trades (1995-2002)trades (1995-2002)

Million

1.80 2.003.75

7.48

24.05

22.13

15.15

9.13

0

5

10

15

20

25

30

1995 1996 1997 1998 1999 2000 2001 2002


Evolution of Greek Stock Market IndicatorsEvolution of Greek Stock Market Indicators

(1995-2002)(1995-2002)

Billion EURO

11.8 17.428.8

67.0

197.5

117.7

96.9

64.7

4.1 5.817.0

41.3 42.3

24.8

172.9

101.4

0

40

80

120

160

200

1995 1996 1997 1998 1999 2000 2001 20020

1,000

2,000

3,000

4,000

5,000

6,000

Market Capitalization Turnover Stock Market General Index

3.3. IPO’s STATISTICSIPO’s STATISTICS


• Evolution of Number of IPOs

• IPOs Total Capital Drawn

• Use of IPOs Capital Drawn

• Over cover of IPO

• Maximum/Minimum first 3 listing days

• The largest IPOs

• Evolution of IPOs Indicators


Evolution of Number of IPOs (1994-2002)Evolution of Number of IPOs (1994-2002)

46

20 20

14

27

46

50

24

20

0

10

20

30

40

50

60

1994 1995 1996 1997 1998 1999 2000 2001 2002


IPO’s Total Capital Drawn (1994-2002)IPO’s Total Capital Drawn (1994-2002)

Million EURO

275.1065.27

285.4359.76

2,166.83

4,868.39

2,371.12

1,068.89958.60

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

1994 1995 1996 1997 1998 1999 2000 2001 2002


IPO’s Total Capital Drawn -IPO’s Total Capital Drawn -values adjusted to inflation (1994-2002)values adjusted to inflation (1994-2002)

Million EURO

275.1060.48

246.5249.29

1,720.62

3,762.76

1,763.67

771.52 670.53

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

1994 1995 1996 1997 1998 1999 2000 2001 2002

Basic year - 1994


IPO’s Total Capital Drawn (1994-2002)IPO’s Total Capital Drawn (1994-2002)

Million EURO

958.60 (2002)

1,068.89 (2001)

4,868.39 (1999)

2,166.83 (1998)

275.10 (1994)

59.76 (1997)

285.43 (1996)65.27 (1995)

2,371.12 (2000)


IPO’S Capital Drawn -IPO’S Capital Drawn -values adjusted to inflation (1994-2002)values adjusted to inflation (1994-2002)

Million EURO

670.53 (2002)

771.52 (2001)

1,763.67 (2000)

3,762.76 (1999)

1,720.62 (1998)

49.29 (1997)

246.52 (1996)60.48 (1995)

275.10 (1994)

Basic year - 1994


IPO’s Total Capital DrawnIPO’s Total Capital Drawn

Year Total capital drawn Total capital drawn(adjusted to inflation)

(EURO) (EURO)

1994 275,099,357 275,099,3571995 65,274,634 60,484,2791996 285,434,377 246,515,9901997 59,759,272 49,289,6751998 2,166,833,372 1,720,624,2621999 4,868,394,084 3,762,761,4972000 2,371,122,752 1,763,671,3432001 1,068,893,048 771,524,7762002 958,603,614 670,528,241

Basic year - 1994


Use of IPO’s Capital DrawnUse of IPO’s Capital Drawn

Other investments (4.53% )

Fixed & New Technology Assets (23.32% )

Working Capital (20.72% )

Reduction of Short Term/ Long Term

liabilities (16.62% )

Acquisitions - new companies

establishments (34.81% )


Use of Capital Drawn (1994-2002)Use of Capital Drawn (1994-2002)

Destinations of the capital drawn Weight

(Percentage)

Reduction of Short Term/Long Term liabilities 16.62%

Working Capital 20.72%

Fixed & New Technology Assets 23.32%

- 34.81%

Other investments 4.53%

Acquisitions new companies establishment


Over cover of IPO (1994-2002)Over cover of IPO (1994-2002)

0 0

35.56 32.36

90.35

215.06

112.17

13.25 14.71

0

50

100

150

200

250

1994 1995 1996 1997 1998 1999 2000 2001 2002


Maximum/Minimum first 3 Trading Days Maximum/Minimum first 3 Trading Days (1999-2002)(1999-2002)

1000%

529%

291%

167%

19% -80%-21%-21%

-200%

0%

200%

400%

600%

800%

1000%

1999 2000 2001 2002


The Largest IPOs (1994-2002)The Largest IPOs (1994-2002)

Year Company Sector Total capital drawn

Media 20,909,757

1995 Alpha Finance Investments 9,079,236

1996 OTE 281,900,325

1997 Chios Bank Banks 13,003,548

1998 ELPE Energy 245,254,846

1999 Panafon Telecommunications 1,077,035,950

2000 Cosmote Telecommunications 457,813,646

2001 DEH Energy 463,683,052

2002 OPAP Lucky Games 508,700,000

EURO

Telecommunications

Tiletipos 1994


Evolution of IPO’S IndicatorsEvolution of IPO’S Indicators(1994-2002)(1994-2002)

Million EURO

46

20 2014

27

46 50

24 20

0.0 0.0

35.6 32.4

90.4

215.1

112.2

13.3 14.7

0

50

100

150

200

250

1994 1995 1996 1997 1998 1999 2000 2001 20020

1,000

2,000

3,000

4,000

5,000

No. of IPO Overcover of IPO Total capital drawn


Evolution of IPO’s Indicators -Evolution of IPO’s Indicators -values adjusted to inflation (1994-2002)values adjusted to inflation (1994-2002)

Million EURO

10.7%3.1% 3.2%3.9%2.7%3.9%4.7%7.3%7.9%

-32.6%

-23.5%

-38.8%

-29.4%

102.2%

85.0%

58.6%

2.1%5.2%

-40%

0%

40%

80%

120%

1994 1995 1996 1997 1998 1999 2000 2001 2002

-1,200-1,000-800-600-400-20002004006008001,0001,2001,4001,6001,8002,0002,2002,4002,6002,8003,0003,2003,4003,6003,800

Inflation Stock Market General index (annual variation) Total capital drawn - values adjusted to inflation

`

PART VPART V

CASE STUDY CASE STUDY

PIRAEUS PORT ORGANIZATIONPIRAEUS PORT ORGANIZATION

We present the case of ‘Piraeus Port Organisation’, the last company that entered the Greek Capital Market. The key figures of the IPO are the following:

Existing Shares 25,000,000

New shares 6,375,000

Face Value 2 EURO

Margin 7.70 – 8.80 EURO

Period 23-25/06.2003

Part IV – Case Study – Piraeus Port OrganizationPart IV – Case Study – Piraeus Port Organization

Main Underwriters EFG Eurobank ErgasiasAgricultural Bank of Greece

5/2/2002 Decision of the Board of Directors that the company shall go public

July 2003 Approval and Distribution of the IPO Prospectus

25/7 to 27/7/2003 Registration Period

30/7 to 1/8/2003 Distribution of shares to shareholders

8/8/2003 First Trading Day


The company we present enters the Capital Market in order to raise funds for implementing the investment plan. The plan involves investment such as the construction of 2 new piers, which shall increase the cargo transportation, the purchase of 46 vehicles and the preparation of the port.

The evolution of the share price the first 5 days are the following:

OLP -FIRST 5 TRADING DAYS

11

11.2

11.4

11.6

11.8

12

12.2

12.4

12.6

12.8

1st day 2nd day 3rd day 4th day 5th day

LISTING DAYS


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