4 THE TIMES BUSINESS • Thursday, January 10, 2008 FINANCIAL ANALYSIS Initial public offering of Maltapost 40% of shares on offer at €0.50 each Edward Rizzo ALTAPOST published a prospectus on January 2 Min connection with an offer by the government and Malta Government Investments Ltd of 11,200,000 shares of a nominal value of €0.25 each at a price of €0.50 per share. This represents 40 per cent of the issued share capital of the company. A pre-placement exercise for up to a maximum of 45 per cent of the total share offer (i.e. 5,040,000 shares) will take place on Monday. The remaining shares and any shares not acquired during the pre-placement will be made available during the public offering which opens on Tuesday and closes on Friday, January 18 • Introduction of innovative current financial year to €1.5 or earlier in the case of over- postal products and services: million. Surprisingly, the subscription. Applications are for a Maltapost will seek to provide its company has no debt and has minimum of 2,000 shares (€1,000) customers, both through its healthy cash balances amounting and in multiples of 100 shares existing network and online via its to almost €7.5 million as at (€50) thereafter. Maltapost has corporate website, with new and September 30, 2007. submitted an application for its innovative postal products that The directors of Maltapost total share capital amounting to meet the changing market agreed on a policy of distributing 28,000,000 shares to be admitted environment such as direct mail up to 50 per cent of available to the official list of the Malta services and postal cards. profits for distribution to Stock Exchange. • Provision of financial services: shareholders in every financial Maltapost plc is Malta’s largest The directors intend to use the year. Based on the estimated postal services company and was expertise of the majority profit of €1.5 million during the designated as the Universal shareholder, Lombard Bank, to current financial year ending Service Provider (USP) in Malta provide low-cost financial services September 30, 2008, and under the Postal Services Act. through its network. For example, assuming a 50 per cent payout Maltapost has the exclusive the encashment of pension ratio, the directors ought to right to operate postal services cheques, foreign exchange declare a final dividend of €0.027 reserved for the USP until the transactions and savings per share. This equates to a very process of liberalisation in the products. Overseas postal attractive net yield of 5.3 per cent postal sector is completed by companies also accept deposits (8.2 per cent gross of tax) – the January 1, 2013. and provide loans and mortgages highest yielding equity on the The company operates through as well as the issuance of debit local capital market. its network of 33 post offices and credit cards. The company’s dominant situated throughout Malta and • Entry into transport and presence in the local market, and Gozo, complemented by 27 sub- logistics market: The directors the strategy to be adopted by the post offices, five delivery hubs and believe that, with the increasing new shareholder should enable 431 stamp vendors. movement of goods globally and Maltapost to further build upon The mail division provides the reduction of customs barriers, its recent success ahead of the comprehensive services for there is an opportunity for the liberalisation of the postal market domestic and international mail company to enter into the scheduled to take place on including a registered and insured transport and logistics sector January 1, 2013. The low postal service. The company, (mainly courier and freight multiples coupled with the through its international forwarding) by building on its possibility of a very attractive arrangements within the existing customer relationships dividend yield should result in a Universal Postal Union (UPU), and network. healthy demand from investors has the capability to deliver and • Further development of wishing to participate in the receive all items of mail between philatelic products: Given the future success of the all countries worldwide. considerable demand both in transformation of this long- Maltapost also provides a Malta and internationally by established postal operator. number of direct mail services, collectors for Maltese stamps and Before contemplating any principally for its business other philatelic collectables, investment in Maltapost, customers. These include Maltapost aims to continue prospective investors should document management and developing innovative stamps that consider all the risk factors scanning, invoice processing, have broad appeal and intends to detailed in the prospectus, which printing, folding, labelling and work closely with the numismatic is available from our website at enveloping. Additional services unit of Lombard Bank Malta to www.rfstockbrokers.com. include the provision of a business offer joint products. reply service and unaddressed • Process improvements: The Rizzo, Farrugia & Co. advertising mail. Maltapost also company will continue to assess its (Stockbrokers) Ltd are members provides an express mail service. internal processes and systems of the Malta Stock Exchange and The company operates full service with a view to increasing efficiency licensed to conduct investment post office box facilities in various and improving its service both to services business by the Malta localities which also include retail and business customers The Financial Services Authority. , . This report contains public related scheduled pick-up and directors believe that the presence information only and is published delivery services. It also provides of Lombard Bank will help the solely for informational purposes local door-to-door distribution company improve key aspects of and is not to be construed as a services, including warehousing, its business. solicitation or an offer to buy or fulfilment and distribution Maltapost has undergone a sell any securities or related services of sundry merchandise. successful restructuring exercise financial instruments. Past Internationally, the philatelic in recent years as evidenced by the performance is not necessarily history of Malta ranks among the strong turnaround in the indicative of future results. oldest and most respected, company’s performance with Neither Rizzo, Farrugia & Co., attracting considerable interest profits climbing to €1 1 million in nor any of its directors or . employees accepts any liability for from collectors. the year to September 30, 2007 any loss or damage arising out of In August 2006, Lombard Bank from a loss of €64,000 two years the use of all or any part of this plc acquired a 35 per cent earlier. This strong rise in report. shareholding from Transend profitability resulted both from an Mr Rizzo is a director at Rizzo, Worldwide Ltd of New Zealand and increase in turnover as well as Farrugia & Co. (Stockbrokers) Ltd a further 25 per cent shareholding from cost reductions. The rise in www.rfstockbrokers.com was purchased from the Maltese the company revenue was brought government last September. about from growth in © 2007 Rizzo, Farrugia & Co. Following Lombard s international mail volumes and (Stockbrokers) Ltd. ’ All rights reserved. acquisition of majority control, the bulk mail as well as the increase directors agreed to expand the in postage tariffs, which were fully company’s products and services reflected in the 2007 financial through its retail network. year. Moreover, the directors are Maltapost’s future strategy projecting a further 36 per cent mainly involves: growth in profits during the Distributed by Allied Newspapers Ltd. under license from timesofmalta.com.