Subscription for the 9.0 million lev (6.4 million/4.6 million euro) initial public offering (IPO) of indebted Bulgarian football club CSKA opened on Friday, attracting higher-than-expected investor interest, the local brokerage which manages the IPO said.
Investors subscribed for 75,000 shares in 760 deals in just five and a half hours, Dimitar Georgiev, head of Elana Trading's financial markets department, said.
Investors have been offered 3.0 million shares with a nominal value of 1.0 lev and an issue price of 3.0 levs each.
Football fans have been queuing up at all offices of the brokerage company throughout the day, Georgiev said. They, however, have been subscribing for small batches of shares and it will take large investors for the whole issue to be sold, he added.
The IPO will be considered successful if investors subscribe for at least 1,409,210 shares. The subscription will run for 15 days.
CSKA’s capital currently stands at 5.09 million levs.
The debt-ridden club was acquired by Luxemburg-based Lira Investment in July last year in a debt-for-equity deal. As of the end of October, its liabilities stood at over 20 million levs.