Lilith
11-13-2002, 07:50 AM
Updated: Friday, November 8, 2002 12:11 AM ET Printer-friendly version
LONDON -(Dow Jones)- Swiss-based adult entertainment company Erotic Media AG (Z.ERO, news) raised EUR3 million Friday in an initial public offering on Frankfurt's Geregelter Markt exchange.
The offering was three times oversubscribed, with the shares up EUR10, or 33%, at EUR40 at 1653 GMT.
The company, which buys and sells erotic films, sold 100,000 shares at EUR30 a share, said Farhad Safarli, head of investor relations.
The deal was sold to mainly continental-based institutional and strategic investors, he added.
"We are pleased with the performance of the shares. These are tough times right now, and German stocks are down again (Friday)," said Safarli. At 1653 GMT the DAX was down 68 points, or 2.2%, at 3087.5.
Weak equity markets have seen initial public offering activity in Germany slow to a crawl this year. This is the first company to list since early July, when the renewable energy source company Solar Fabrik floated.
In the adult entertainment industry Spanish firm Private Media scrapped plans to list on the Neuer Markt in February after demand failed to meet expectations.
Cash raised Friday will be used to enlarge the company's film library, which at 3,000 films, is the largest in Europe.
Last year the company saw a turnover of CHF13.8 million and a net income of CHF1.1 million.
Safarli sees the company's growth coming through use of new technology such as DVD sales and video-on-demand TV.
Listed adult entertainment company Beate Uhse AG (G.BUH, news) owns 30% of Erotic Media. The two companies also have a joint venture in Beate Ushr TV.
Beate Uhse, a German sex-shop chain, raised EUR63.9 million when it went public three years ago.
LONDON -(Dow Jones)- Swiss-based adult entertainment company Erotic Media AG (Z.ERO, news) raised EUR3 million Friday in an initial public offering on Frankfurt's Geregelter Markt exchange.
The offering was three times oversubscribed, with the shares up EUR10, or 33%, at EUR40 at 1653 GMT.
The company, which buys and sells erotic films, sold 100,000 shares at EUR30 a share, said Farhad Safarli, head of investor relations.
The deal was sold to mainly continental-based institutional and strategic investors, he added.
"We are pleased with the performance of the shares. These are tough times right now, and German stocks are down again (Friday)," said Safarli. At 1653 GMT the DAX was down 68 points, or 2.2%, at 3087.5.
Weak equity markets have seen initial public offering activity in Germany slow to a crawl this year. This is the first company to list since early July, when the renewable energy source company Solar Fabrik floated.
In the adult entertainment industry Spanish firm Private Media scrapped plans to list on the Neuer Markt in February after demand failed to meet expectations.
Cash raised Friday will be used to enlarge the company's film library, which at 3,000 films, is the largest in Europe.
Last year the company saw a turnover of CHF13.8 million and a net income of CHF1.1 million.
Safarli sees the company's growth coming through use of new technology such as DVD sales and video-on-demand TV.
Listed adult entertainment company Beate Uhse AG (G.BUH, news) owns 30% of Erotic Media. The two companies also have a joint venture in Beate Ushr TV.
Beate Uhse, a German sex-shop chain, raised EUR63.9 million when it went public three years ago.