Reasons for investing in Pegas include:
· the level of interest in the IPO in the investment community;
· Pegas comes from a sector not represented on the market;
· Pegas Nonwovens is large enough to justify an IPO, with the subscription probably being larger than 100 mn
EUR (the lower limit for institutional investors to be interested, in our view)
· its free float is sufficiently large (at about 56%),
· investor sentiment on equity markets is positive;
· the company has ready access to the fast-growing markets of Central and Eastern Europe;
· higher costs can almost entirely be passed on to customers;
· Pegas's operating efficiency is high and its operating margins are higher than those of its competitors. (on
average by 17 p.p.)