Enterprise Investors (EI) has floated the Polish IT company Teta on the Warsaw Stock Exchange (WSE). EI has sold part of its stake in the IPO for more than PLN26m ($7.7m), yielding a 2x investment multiple. Teta has raised an additional PLN5m ($1.2m) for investments in new ERP software products.
EI acquired a 54% stake in the business in 1998. WSE investors bought 3 million Teta shares, or 43% of the company. Investor interest was high, and the offer was 2.2 times oversubscribed. Post-IPO, funds managed by EI now hold a 37% stake in Teta.
Founded in 1997, Teta SA specializes in the design and production of ERP (enterprise resource planning) software for medium-sized companies, providing both pre-implementation consultancy and system implementation. In 2004, Teta generated revenues over PLN33m ($9m). Teta’s performance for the first 9 months of 2005 posted net income 30% up on the same period for 2004.
Rafa_ Bator, EI vice president responsible for the Teta investment, said: “Enterprise Investors has been present in Teta since 1998. Since our investment, Teta transformed itself into a fully customer-oriented business of the first rank. With the IPO successfully completed, Teta is able to continue with the implementation of its strategy, which assumes achieving a dominant 30% share of the mid-sized company ERP market in Poland. Taking into account the future growth of the company, Enterprise Investors decided to remain in the company as a large investor.”