By Hamza Hendawi
LOUIS Cruise Lines Ltd, a part of giants Louis Tours, formally announced its much-heralded IPO yesterday, saying applications from the public would be received for four days starting next Monday.
A statement by the company, among the biggest operators in the Mediterranean, said 23.27 million shares at 40 cents apiece would be offered to the public, while shares worth £8.95 would be sold in a private placement to investors, certain individuals and business partners.
The share issue will represent 30 per cent of the company’s share capital, leaving the remaining 70 per cent in the hands of the Louis Organisation.
The statement said the Initial Public Offer (IPO) of Louis Cruise Lines Ltd was set to be the largest ever by a company in Cyprus, and that its forecast market capitalisation of £61.1 million would place it in fifth place in the Cyprus Stock Exchange.
Louis Cruise Lines made a profit of £5.2 million in 1998 and yesterday’s statement said the company was expected to make a similar profit this year.
Louis is expected to hit the market during the first week of August in what may turn out to be a welcome injection of new energy in a bourse that may be losing direction after more than 80 per cent appreciation in the first six months of the year.
Another eagerly-awaited market entry is that of investment and brokerage powerhouse Severis & Athienitis Financial Services Ltd.
In the market yesterday, things may have been heating up in the tourism sector in anticipation of Louis’ debut. The tourism sector was red hot yesterday with its sub-index shooting up by an eye-popping 8.05 per cent on a volume worth £2.08 million.
It was one of only two of the market’s seven sectors to finish in positive territory yesterday, the other one being that of the banks.
Between them, the two sectors helped the all-share index reverse the downward trend of the past two days which shaved just over three per cent of the market’s value. The index finished up 0.83 per cent at 168.28 on a volume worth a respectable £12.36 million.
The day’s undisputed tourism star was Libra Holidays, which rose by 31.50 cents to finish at £1.68. The share, fresh from a two-week voluntary suspension for a five-for-two split, attracted trade worth £1.87 million, an unusually high sum for a tourism title.
In the traditionally boisterous banking sector, the Bank of Cyprus finished up a meagre two cents at £7.10, while the Popular Bank and Hellenic Bank finished up at £4.04 and £5.11 respectively.
