Kostrzyn nad Odrą, Poland 16 November 2009 -- Arctic Paper S.A., the second-largest European producer of bulky book paper in terms of production volume and one of Europe’s leading producers of fine graphic paper, has allocated all of its offered shares. Investors were allocated a total of 10,850,000 shares. Demand declared in the book building process by the Institutional Investors was two times higher than the number of shares offered to the institutions. Subscription for Individual Investors was 5,4 times higher then the number of offered shares. High demand resulted in reduction of subscriptions for Individual Investors by 84,4%. The company’s public offering, comprising newly issued shares and existing shares, achieved a value of PLN 162.8 million, and the company raised gross proceeds from the new issue of PLN 121.5 million. The stock market debut of Arctic Paper S.A. is scheduled for the second half of October 2009.
Overview of the public offering:
• The final number of shares offered in the public offering was 10,850,000 shares, including:
- 8,100,000 newly issued Series C Shares (New Shares).
- 2,750,000 existing Series B Shares, offered by Arctic Paper AB (Sale Shares).
- 15% of all the Offered Shares, i.e. 1,627,500 shares, were allocated to individual investors.
- 9,222,500 shares were allocated to institutional investors.
• As a result of the public offering, the proportion of the total shares of Arctic Paper S.A. held by new shareholders will be 20.7%.
“We are pleased with the interest in our company shown by both retail investors and institutions, which is reflected in the results of our public offering,” said Michał Jarczyński, CEO and President of the Management Board of Arctic Paper S.A. “We are confident that the funds raised from the issue of shares will enable us to strengthen our market position, thanks to which the company’s new shareholders will be able to participate in its steady growth.”
ARCTIC PAPER S.A. is the second-largest European producer of bulky book paper in terms of production volume, and one of Europe’s leading producers of fine graphic paper. The Group produces many types of uncoated wood-free paper and uncoated wood-containing paper for printers and end users from the book and magazine publishing and advertising sectors.
The Group has three paper mills, in Kostrzyn, Poland; Munkedal, Sweden; and Mochenwangen, Germany. The total production capacity of the three paper mills in the Group is 540,000 metric tonnes of paper per year.
• The paper mill in Kostrzyn has a production capacity of 265,000 metric tonnes annually and produces chiefly uncoated wood-free paper for general printing uses, such as printing of books, brochures and forms, for making envelopes and other paper products.
• The paper mill in Munkedal has a production capacity of 160,000 metric tonnes per year and produces mainly uncoated wood-free paper chiefly used for printing books and high-quality brochures.
• The paper mill in Mochenwangen has a production capacity of about 115,000 metric tonnes per year and produces chiefly uncoated wood-containing paper used primarily for printing books and flyers.
Sales offices handling distribution and marketing of the Group’s products are an important part of the Group. Currently the Group has 15 sales companies, providing it access to all European markets and allowing it to obtain 1/5 of the European market for bulky book paper.
The Arctic Paper Group employs a total of nearly 1,100 people. The headquarters of the international Group are in Kostrzyn, Poland. The sole shareholder of Arctic Paper S.A. is the Swedish company Arctic Paper AB.
This material is strictly of a promotional nature and does not constitute a recommendation for purposes of the Finance Minister’s Decree of 19 October 2005 on Information Constituting a Recommendation for Financial Instruments, Issuers or Underwriters (Journal of Laws No. 206 item 1715). The prospectus is the sole legally binding document containing information about Arctic Paper S.A. (the "Issuer") and the offering of the Issuer’s shares in the Republic of Poland. The prospectus has been approved by the Financial Supervisory Authority and is available in electronic form at the Issuer’s website: www.arcticpaper.com. A hard copy of the prospectus may be obtained at the Issuer’s headquarters, ul. Fabryczna 1, Kostrzyn nad Odrą, Poland; at the headquarters of UniCredit CAIB Poland S.A. (acting as Offering Entity), ul. Emilii Plater 53, Warsaw; at customer service points accepting share subscriptions; at the Financial Supervision Authority Information Centre, pl. Powstańców Warszawy 1, Warsaw; and at the Warsaw Stock Exchange Promotional Centre, ul. Książęca 4, Warsaw.
This material may not be published, directly or indirectly, in or to the United States of America or any other countries when publishing information included in this Prospectus may be restricted or prohibited by law.