The process of accelerated book-building for Archicom shares has been completed, as a result of which Archicom, Echo Investment and DKR Investment, i.e. companies belonging to the Echo Investment Group, set the sales price of existing Archicom shares and the issue price of 10 million new series D and E shares at PLN 22 per piece. Archicom will use the funds obtained in this way primarily to intensify land acquisitions for further investments.
As a result of completing the book-building process and the offer of newly issued series D and E shares, Archicom will accumulate capital of PLN 220 million, which will allow it to continue its development strategy and increase the scale of the Company’s business. Ultimately, Archicom plans to sell 4,000 apartments per year in the medium term. In total, by the end of 2023, the Echo-Archicom Group plans to start the development of 2,400 apartments, of which Archicom will build 1,500.
The series D shares were issued through a public offering addressed only to investors who meet the criteria specified in the issue resolution. The offer of series E shares was addressed exclusively to DKR Investment, which is a shareholder of the Company and a subsidiary of Echo Investment. At the same time, Archicom shareholders who, at the end of the day of registration of participation in the Extraordinary General Meeting at which the issue resolution was adopted, represented more than 0.20 percent of Archicom’s share capital, could keep their existing share in the Company’s share capital.
“Our intention is to use the opportunities resulting from our presence on the capital market to support Archicom’s development. We want to respond even faster to occasions to buy the most attractive plots in the largest cities in Poland. It is in such locations that we create the highest-quality residential projects and living spaces. By the end of 2023, the Echo-Archicom Group plans to start the development of 2,400 apartments, of which 1,500 will be delivered by Archicom. Ultimately, we want to sell 4,000 apartments per year in the medium term. This result should place us among the top residential developers in the country, but reaching this goal requires intensive purchases of plots for new projects,” says Waldemar Olbryk, president of Archicom S.A.
The offer addressed to qualified investors included up to 3.89 million new series D shares and up to 6.11 million new series E shares of Archicom. At the same time, DKR Investment distributed for sale 6.11 million existing and admitted to trading shares of the Company. At the same time, the shareholder confirmed his intention to buy the same number of newly issued series E shares of the Company.
“In the Echo Investment Group, we consistently implemented the development strategy after Archicom took over competencies in residential real estate. Our housing company aims to achieve the position of a nationwide developer of first choice, to increase its nationwide brand recognition as well as to strengthen customer trust and satisfaction, to the benefit of our stakeholders. The funds obtained through the issue of new shares will be used primarily to accelerate and intensify activities in land acquisition for further investments”, comments Maciej Drozd, vice president of Echo Investment.