On December 8, 2010 the Polish Financial Supervision Authority approved the Prospectus of Izostal S.A. prepared in line with the public offering concerning 12,000,000 shares, K series, offered by Izostal S.A. and in connection with the application for admission and introduction of Shares, series: A, B, C, D, E, F, G, H, I, J and K and rights to K series Shares to the transactions in the regulated market managed by Giełda Papierów Wartościowych w Warszawie S.A. (Warsaw Stock Exchange). On the same date the Prospectus was published on the website of Izostal S.A. (www.izostal.pl) and Dom Maklerski BDM S.A. (www.bdm.pl).
On December 20, 2010, after the demand book was established among institutional investors, the Management Board of Izostal S.A. set the issue price of K series shares at PLN 5.50 for each Share Offered in the Institutional Tranche and Individual Tranche, as well as the final number of K series shares offered: 1,000,000 Shares Offered in the Individual Tranche and 11,000,000 Shares Offered in the Institutional Tranche.
From December 21, 2010 to December 23, 2010 the Public Subscription for K series shares was conducted, and subscriptions were accepted for the Institutional and Individual Tranches.
On December 29, 2010 the Management Board of Izostal S.A. adopted a resolution on the allocation of K series Shares of a face value of PLN 2.00 and an issue price of PLN 5.50 thousand, offered under the Public Offering.
As for the Individual Tranche, where 1,000,000 K series shares were offered, the number of correct and paid subscriptions was 645 for the total number of 6,775,486 Shares, of a total value of 37,265,173.
As for the Institutional Tranche, where 11,000,000 K series Shares were offered, the number of correct and paid subscriptions was 60 for the total number of 11,000,000 Shares, of a total value of PLN 60,500,000.
As a consequence of the Public Offering investors were allocated a total of 12,000,000 K series share, i.e. all the shares offered under the IPO.
The value of the subscription was PLN 66,000 thousand net (amount before deduction of Offering costs).
Total Offering costs incurred by the Company in 2010 (the so-called issue costs) amounted to PLN 3,621 thousand.
Based on the Public Offering Izostal S.A. obtained PLN 62,379 thousand (net). According to the objectives specified in the Prospectus, the funds will be allocated for co-financing of the construction of the Research and Development Center for Steel Products and Technologies (PLN 12,658 thousand) and increase in working capital (PLN 49,721 thousand).