Book-building to decide on price
Actual listing in Q1 2006
Subscriber channel Lumiere TV Public Co. Ltd. is awaiting word from the SEC paving the way for its simultaneous dual listing on the Cyprus and Athens stock exchanges, scheduled to take place before the end of the first quarter of the year.
LTV Executive Chairman Akis Avraamides told the Financial Mirror in an exclusive interview that the group is awaiting word from the Cyprus Securities and Exchange Commission on its application filed under EU rules, which once approved will allow it to apply for a listing on any EU bourse.
“We have decided to seek a simultaneous listing on both the CSE and the ASE,” said Avraamides. The lead underwriters of the issue are the National Bank of Greece, Egnatia Finance of Greece and Laiki Bank Group. The lead advisors are Egnatia Financial Services Cyprus.
The pricing of the issue, which has not yet been decided, will be concluded through the book-building method in Greece and Cyprus, while the LTV group intends to hold investment road shows in Athens, London and Nicosia.
LTV reported CYP 12.5 mln in sales in 2004 compared to CYP 11.5 mln in 2003, while earnings before exceptional items and taxes amounted to CYP 3 mln.
Once approved, LTV intends to list on the CSE Main Market, while in Greece, due to the fact that its market cap could fall below EUR 100 mln, it may be considered as a medium sized firm.
NEW AREAS
The aim of the listing is to allow LTV to enter into new areas involving hi-tech and mobile phones, boost its production facilities, expand into the Greek market and offer interactive services.
The company produces commercials, does sub-titling and dubbing work through its subsidiary in Greece and is involved in outside broadcasting of sports events including the Cyprus First Division football matches.
The company wants to use some of the proceeds from the flotation to further improve its production facilities in order to offer value added services to other providers, including foreign stations.
LTV also holds a 28% stake in the CSE listed Multichoice, a 5% stake in Multichoice Hellas, a controlling stake in D&M Telemarketing, and has the transmission rights to the Cyprus First Division football games, the UK Premier League, the UEFA Champions Cup, basketball, contracts for studios, as well as rights of transmission of television series and films.
PRODUCT MIX
Boasting 65,000 subscribers, of whom 15,000 have upgraded to the NOVA digital platform, Avraamides said LTV has a 30% market penetration of all households in Cyprus, which is exceptional by international standards.
The key to the success is that LTV offers the right product mix, according to Avraamides, which includes Cyprus, Greek, UK and UEFA football combined with the latest film releases, and popular series like Desperate Housewives, Joe and Lost, etc.
After the flotation, which will combine a capital increase and offering by existing shareholders, the majority shareholders will continue to include Chris Economides, George Xinaris, Aris Sakorafos, Avraamides and the 46 founding shareholders who put up the initial capital when the company was established in 1993.
