The flotation of Polar Communications (TASE:PLRC) subsidiary Nipson Digital Printing Systems plc has gotten underway. Nipson Digital expects to raise $14.7 million in its IPO on the on the London Stock Exchange AIM. In addition, Polar Communications injected $3.7 million into the company. The issue was held at a company value of $38.6 million, before money, and $57 million, after money. Trading in Nipson Digital's share will begin on Friday, under the ticker NDP, at a starting price of £0.70.
Polar Communications, a sub-subsidiary of Shrem Fudim Kelner & Co. (TASE:SFK), owns 94% of Nipson, through its subsidiary Koonras Technologies. On the eve of Nipson's IPO, Polar Communications injected $3.7 million into the company, in order to bring its shareholders equity to $5 million. The capital injection increased Polar Communications' investment in Nipson to $10 million.
Nipson fully controls Nipson SAS, which manufactures, develops, sells and markets around the world high-speed, variable content, long and short series, black-and-white commercial digital presses. Nipson uses a proprietary magnetic imaging technology, "magnetography", capable of printing on different surfaces.
Polar Communications' indirect stake in Nipson Digital will fall from 94% to 70% after the IPO. The diluted stake will be worth $40 million, reflecting a paper profit of $30 million. Polar Communications will report an immediate capital gain of NIS 34 million from the IPO from the dilution of its stake in Nipson.
Polar Communications' parent company, Polar Investments (TASE:PLR), will report a capital gain of NIS 27 million, and Leader Holdings and Investments (TASE:LDER), Polar Investments parent company, will report a capital gain of NIS 12.7 million. Shrem Fudim Kelner will report a capital gain of NIS 9 million. All the capital gains will be reported in the companies' financial reports for the third quarter of 2004.
Koonras acquired Nipson in April 2002 from Xeikon France SA, as part of the latter's receivership proceedings.
Published by Globes [online] - www.globes.co.il - on July 28, 2004