Sources inform ''Globes'' that Ronson Development Group, owned in equal shares by a Uri Dori Engineering Works Corp. (TASE: DORI) subsidiary Dori ITR and IT International Theaters Ltd., is considering an issue on London’s Alternative Investment Market (AIM). Ronson is conducting an initial study of an IPO, which would take place towards the second half of the year. The company builds residential projects in Poland.
Ronson was valued at €40 million a month ago in a deal in which Dori increased its stake in the company from 25% to 50%. Ronson plans to substantially expand its activities in the coming months. The company value for the planned IPO will reportedly be much higher than the last valuation for the company.
Ronson is now building 2,100 housing units in Warsaw and Poznan. 560 apartments are under construction. 450 have already been sold. The company also owns a 50,000-sq.m. lot zoned for the construction of office buildings, and a total of 9.25 acres in other lots zoned for various uses. On the basis of an average price of $90,000 per apartment, the company posted an estimated $40 million revenue in 2005. On the basis of usual profit margins in Poland, the company’s profit is expected to be $4 million.
Ronson plans to buy land for residential projects in other Polish cities, as well as in Romania and Ukraine in the coming months.
Founded in 2000, Ronson is considered a profitable and fast-growing company. It is one of the strongest brands in Poland’s residential market. The company posted a net profit of €1.9 million on €13.4 million revenue in January-September 2005.
Published by Globes [online], Israel business news - www.globes.co.il - on February 14, 2006