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    CEZ   CZ0005112300

CEZ, A. S.

(CEZ)
  Report
End-of-day quote. End-of-day quote Prague Stock Exchange - 07/23
592 CZK   -0.75%
07/23CEZ A S : Information on npp temelín 141 / 2021
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07/23CEZ A S : Information on NPP Dukovany 23/7/2021
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07/22CEZ A S : VISION 2030 Investment story July 2030
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SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

Prague bourse counters declining trade by offering low-cost listing

04/09/2018 | 03:01pm EDT

PRAGUE (Reuters) - Faced with declining trade, the Prague Stock Exchange (PSE) is shaking up the classic initial share offering by giving smaller firms a new listing venue that bypasses expensive investment bank fees.

Trading volumes on the Czech bourse have fallen by a fifth since 2013 and stock buybacks have cut the free float of some of Prague's 13 main-market stocks, raising the risk of delistings.

PSE Chief Executive Petr Koblic said smaller exchanges like Prague have been hit by a shift towards investors trading via brokers rather than directly on the exchange since the European Union's MiFID market reform.

The exchange has also suffered from the enormous cash piles held by Czech private equity firms and from cash-rich private funds competing with investors for listed companies in recent years, he said.

Prague will launch the new START market on May 15 to attract firms valued at up to 80 million euros ($100 million) - a size that makes fundraising via IPOs costly in relation to fees but is too large for crowdfunding.

"There is this gap where companies don't have access to public markets," Koblic told Reuters in an interview on Thursday.

"Some companies don't want to have private equity or venture capital as partners... Some companies want to stay independent, they want to grow but they need some equity."

Prague has long sought to boost its capital markets in a country where firms have easy access to cheap bank loans.

With market capitalisation of 52.2 billion euros, the exchange is dominated by a handful of big stocks, like energy utility CEZ.

QUARTERLY AUCTIONS

Trading will not be continuous on START but in auctions held four times a year. Four companies have already announced their intention to float and Koblic said up to 20 others are in talks.

Unmanned aircraft maker Primoco will be one of the first to list on START and plans to build a new production facility and testing ground with the money it raises.

"We had expected to find a strategic financial investor at some point but it did not develop quickly," Primoco co-owner Ladislav Semetkovsky told Reuters. Traditional investors did not understand its business sector, he said.

Other companies planning to list on START include boot maker Prabos, 3D printing material maker Fillamentum, and shared office provider Hub Ventures.

With potential de-listings of betting group Fortuna Entertainment Group or refiner Unipetrol from the main market, the new system can hardly make up for the lost trading.

Koblic said bigger companies were looking at IPOs on the main market, without giving any further details.

In a traditional IPO, an investment bank typically underwrites the share issue, markets the new shares to investors and sets a price for the shares.

Firms taking the START route will have an adviser, typically a smaller corporate finance consultancy, but standards will be more relaxed than for the regulated market.

They will issue a simplified prospectus, which must be approved by the Czech central bank, and a law firm and an authorised analyst will conduct due dilligence, but costs will be lower than in a traditional IPO.

"The advantage of START over other similar markets in Europe is minimal costs for the issuer," the Prague Stock Exchange said on its website.

Koblic also said some banks were not happy with START.

"We disrupted the traditional situation," he said. "But their traditional model doesn't work for a 20 million euro IPO ... So we are trying to find another model.. without the lead manager."

(This version of the story corrects Fillamentum description in paragraph 13)

(Reporting by Jason Hovet, additional reporting by Petra Vodstrcilova; Editing by Adrian Croft)

By Jason Hovet

Stocks treated in this article : UNIPETROL as, CEZ as, Fortuna Entertainment Group NV

© Reuters 2018
Stocks mentioned in the article
ChangeLast1st jan.
CEZ, A. S. -0.75% 592 End-of-day quote.14.95%
HUB CO., LTD. 1.46% 696 End-of-day quote.28.41%
JASON CO., LTD. 0.19% 540 End-of-day quote.-19.16%
JUST GROUP PLC 0.78% 97 Delayed Quote.38.77%
PX INDEX -0.17% 1190.23 Real-time Quote.16.07%
SHIFT, INC. 3.23% 20110 End-of-day quote.40.53%
THE LEAD CO., INC. -0.15% 662 End-of-day quote.-21.19%
WILL GROUP, INC. 0.10% 971 End-of-day quote.-3.48%
All news about CEZ, A. S.
07/23CEZ A S : Information on npp temelín 141 / 2021
PU
07/23CEZ A S : Information on NPP Dukovany 23/7/2021
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07/21CEZ A S : Information on npp temelín 139 / 2021
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Financials
Sales 2021 206 B 9 479 M 9 479 M
Net income 2021 19 064 M 876 M 876 M
Net Debt 2021 136 B 6 251 M 6 251 M
P/E ratio 2021 15,9x
Yield 2021 6,52%
Capitalization 317 B 14 545 M 14 558 M
EV / Sales 2021 2,20x
EV / Sales 2022 2,23x
Nbr of Employees 30 700
Free-Float 28,6%
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Technical analysis trends CEZ, A. S.
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Income Statement Evolution
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Mean consensus OUTPERFORM
Number of Analysts 13
Last Close Price 592,00 CZK
Average target price 632,40 CZK
Spread / Average Target 6,82%
EPS Revisions
Managers and Directors
Daniel Beneš Chief Executive Officer
Martin Novák Chief Financial & Operating Officer
Otakar Hora Chairman-Supervisory Board
Michaela Chaloupková Chief Administrative Officer
Vladimír Hronek Member-Supervisory Board
Sector and Competitors
1st jan.Capi. (M$)
CEZ, A. S.14.95%15 889
NEXTERA ENERGY0.06%144 872
ENEL S.P.A.-2.73%97 216
IBERDROLA, S.A.-10.90%78 310
DUKE ENERGY CORPORATION14.10%76 707
SOUTHERN COMPANY2.52%65 138