Plastex to sell $1.4m's worth in shares

Plastic packaging maker Plastex Tulcea is running a 48bn ROL ($1.4 million) share issue on RASDAQ, 8bn ROL of which account for the issue premium. This is the second stage of a capital increase, from 230bn ROL to the targeted 270bn ROL. Since none of the company shareholders chose to exert their pre-emption right, the shares are now sold through RASDAQ between January 6-24. In case the entire issue is subscribed, the share capital is to increase by 40bn ROL, in addition to the 8bn ROL issue premium. The company is planning to use the cash it raised for expanding its production of bioriented polypropylene foil (a special type of plastic used for packaging), for working capital and for repaying part of the loans contracted for the investment in the bioriented propylene productive line. The company offers 8 million shares for sale at a price of 6,000 ROL each. Imports of bioriented propylene in Romania totalled $15 million in 2000, with Plastex becoming the only Romanian producer of this type of packaging in 2001. ZF