Kaolin AD-Ruse expects to net at least 60 mln leva (30.7 mln euro) (after deduction of the lead manager’s remunaration and costs) from its forthcoming IPO.

Kaolin intends to use the money to refinance part of its debts to banks and leasing companies, as well as to finance its investmetn program, the company’s prospect shows.

Kaolin AD plans to increase its local production capacities and to focus on product development, as well as on the quality and reliability of its products and cost reduction.

Another part of the money gained from the IPO will be used for acquisitions of companies in South East Europe and for greenfield projects.

Kaolin AD intends to make investments in the expansion of its logistics capacity and R&D activities.

Kaolin’s IPO starts on 18 April 2007. Subscription applications can be submitted no later than 17:00 PM on 20 April 2007 directly or through any licensed investment intermediary in Bulbank AD.

The purchased shares must be paid between 23 and 25 April 2007. Floatation is expected either on or around 28 May 2007.

Kaolin AD is to offer up to 5 mln new shares in the form of capital increase, while up to 1 mln of its existing shares will be offered to the majority shareholder Alfa Finance Holding AD within the IPO.

The IPO will be considered completed if at least 3 mln new shares are sold.

Kaolin is the biggest producer of industrial materials in South East Europe. Its core activities have to do with production and processing of kaolin, quartz sands, clay, limestone, feldspar, dolomite, ceramic pressdusts, etc. There are 9 companies, 34 mines and 10 industrial minerals processing plants in the Kaolin group, situated in Bulgaria, Serbia, Romania and Ukraine.