Polish mobile operator Play announces plans for IPO

Monday 19 June 2017 | 16:05 CET | News

Play Communications, the owner of the Polish mobile operator P4 (branded as Play), announced plans for an initial public offering on the Warsaw Stock Exchange.

Play operates the second-largest and fastest-growing mobile network in Poland, with over 14.3 million subscribers as of 31 March. The company has grown its market share from 4.6 percent at the end of 2008 to 27.6 percent in Q1 2017. Its selling shareholder believes that now, after a period of substantial growth, it is an appropriate time to monetise part of its ownership and to support the company through the offering, which will provide Play with enhanced flexibility for its future financing and corporate strategy.

The offering will consist of a portion of the existing ordinary shares of Play Communications (secondary component), a Luxembourg incorporated company, held by Play Holdings 1, a company ultimately owned by Tollerton Investments Limited and Telco Holdings. The offering consists of a public offering to retail investors, authorised employees and institutional investors in Poland and an international offering.

Play intends to apply for listing and admission of all of the company’s ordinary shares, including new shares issued to management in connection with the offering as part of the settlement of the existing incentive scheme, on the main market of the Warsaw Stock Exchange.

Play Holdings 1, the selling shareholder, intends to use its proceeds to redeem the existing 2022 PIK notes of its parent, Impera Holdings. The remaining portion of the secondary component will fund a distribution to its shareholders and provide partial cash settlement of the existing incentive scheme.

Authorised employees will be eligible to subscribe for shares with a 15-percent discount and will be granted a guaranteed allocation (i.e., no proportional reduction) which is expected to be limited up to PLN 25,000 per employee, subject to a one year lock-up, which would require employees to hold or open investment accounts with PKO BP Securities.

J.P. Morgan, BofA Merrill Lynch and UBS Investment Bank are acting as joint global coordinators and joint bookrunners for the offering. Bank Zachodni WBK and Dom Maklerski of PKO Bank Polski are acting as joint bookrunners and offering agents.

The IPO is subject to the receipt of all relevant registrations and regulatory approvals.

Under the current shareholder structure, the company is indirectly owned and controlled by Tollerton Investments Limited and Telco Holdings, which hold 50.3 percent and 49.7 percent of the share capital, respectively.

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