PRAGUE -- AAA Auto Group said today it will offer 19.5 million shares at 2.25 euros each in an initial public offering on the Prague and Budapest stock markets.
The offer underwritten by Patria Finance and KBC Securities, would make 28.1 percent of the company public, said AAA owner Anthony Denny, an Australian of Czech descent.
Share trading would start on September 24 in Prague, with Budapest trading to follow. If all the shares are purchased at the offering price, the IPO would raise 43.9 million euros to fund Denny's planned expansion in central Europe.
At today's press conference here, Denny said he plans to offer car loans to customers with less-than-perfect credit ratings.
"Subprime is not a popular word right now, but there's a definitely a place for it," he told Automotive News Europe. "Obviously we will have to watch the risk very carefully with our joint-venture partners."
AAA is the largest used car dealer in central Europe with headquarters in the Czech Republic and outlets in four neighboring countries. Last year it sold 61,165 cars. The company also has new-car franchises for Opel and Skoda.
Last year, AAA Auto had revenues of 9,890 million koruny (347.2 million euros) and a preliminary EBIT of 398 million (14 million euros).
You may e-mail Lyle Frink at [email protected]