Successful initial public offering (IPO) of CIAK Group shares

CIAK Group is a 25-year old company based in Croatia, which in its scope of activities includes wholesale and distribution of spare parts and car equipment in the independent aftermarket, as well as environmental activities – recycling of batteries and hazardous waste management. The group operates in Croatia, Slovenia, Serbia and Bosnia and Herzegovina, and consists of more than 1,300 employees who are the main success factor of the group, together with more than 20.000 commercial partners. With more than 120 branches, CIAK Group is the largest Croatian independent aftermarket distributor (the “IAM”) on a consolidated level for a third year in a row; while with four centers for hazardous waste management in Croatia it successfully operates in the Ecology sector in accordance with numerous certificates that adhere to the highest European standards of quality and professionalism.

During the initial public offering, shares were subscribed by Mandatory and Voluntary Pension Funds, Mutual Funds, Insurance Companies and Retail Investors with which the new shares acquired represent 32,13% stake in the Company. The increase of share capital was executed by payment in cash, with the offering being priced at HRK 35 00 per share, by issuing 6.345.599 new registered no par value shares, as a result of which the total number of ordinary shares increased to 19.751.989. The total funds raised through the public offering amounted to HRK 222.095.965,00 Croatian kuna (approx 29,5 milion EUR). Following the successful issuance of new ordinary shares, CIAK Grupa dd plans to list all existing and new shares on the Zagreb Stock Exchange.

It should be emphasized that the IPO of the CIAK Group is also the largest IPO in the Republic of Croatia in the last 3 years, and that after the initial public offering of shares CIAK Group is one of only 7 Croatian companies in which all four mandatory pension funds have invested, which clearly shows the long-term investment potential of CIAK Grupa d.d. shares.

The invested funds will be used for the further development and growth of two key business divisions for which the group is most known. We are very grateful to all our commercial partners who have contributed to the achievement of business goals and expansion of the CIAK Group’s business, and to each of our employees individually, without whom nothing that has been achieved so far would be achievable.