Creotech Instrument S.A. publishes memorandum and launches IPO potentially worth EUR 2.5m

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Creotech Instruments S.A., Europe’s leading European manufacturer of satellite systems and components, and advanced electronics for quantum computer control systems and other applications, published an information memorandum and launched its IPO. The IPO will offer up to 185,000 ordinary series H shares and precedes the Company’s debut on the Warsaw Stock Exchange’s NewConnect market.

  • Creotech Instruments S.A. plans to raise approx. PLN 11m.
  • Subscriptions in the Small Investors Tranche will be open from 29 March
    to 12 April 2021.
  • If all new issue shares are taken up, they will account for 11.66% of the Company’s share capital.
  • Creotech Instruments has been consistenly improving its revenue, currently standing at PLN 29m, with an EBITDA exceeding PLN 3m in 2020.
  • In 2023-2024, Creotech Instruments plans to launch its first own observation microsatellite and market similar microsatellites worth approximately USD 1-4m a piece.
  • The Company plans to use the IPO proceeds primarily to further develop its Earth observation satellite, bring the HyperSat microsatellite platform’s technology up to the state-of-the-art, to create its own offering of modular satelite platforms, and further drive sales and grow its business.

Creotech Instruments is Poland’s largest manufacturer and global exporter of space technologies, and specialized electronics and instruments, including for quantum computers, quantum cryptography, as well as quantum physics and high energy laboratories. The Company’s products were part of 26 space sector projects, including 10 space missions, 4 of which were carried out for the European Space Agency (ESA). One of Creotech’s most important current projects is the HyperSat satellite platform, which positions the Company among a dozen or so companies in the world capable of offering tailor-made microsatellites and entire microsatellite constellations.

“Analytical data show that the microsatellite market is seeing very rapid growth and is expected to quintuple over this decade, chiefly on the back of the consistently growing array of microsatellite applications. Microsatellites can be used for observation, establishing and maintaining critical connectivity, internet connectivity or providing weather forecasts. Recognizing the potential of this sector, we aspire to be one of the greatest beneficiaries of its boom in Europe. By the end of this year, we will have completed work to bring the the satellite platform to Technological Readiness Level 7 (TRL7), which signfies readiness for deployment in space missions and testing in space. The first mission to use the EagleEye platform is slated to launch at the turn of 2023 and 2024 and will provide high-resolution images of the Earth from low orbit (approx. 400 km). We want to offer a similar solution to companies planning to build their own satellite constellations. Soon, we will launch the first project seeking to commercialize the HyperSat platform consisting in building a constellation of three satellites for national security and defense purposes. With a budget of PLN 20m, the project is spread over the next 3 years. This project is a very prestigious for us,” says Jacek Kosiec, President of the Management Board of Creotech Instruments S.A.

In 2017, the global space market was estimated at USD 350 billion and is forecasted to expand to some USD 560 billion (according to Research and Markets) by 2026. In total, the satellite services and satellite manufacturing markets were worth some $130 billion. The Polish Space Strategy assumes that by 2030 the turnover of the Polish space sector should represent at least 3% of the total European market.

“The space technologies and advanced electronics sector has excellent prospects as,  evidenced by, for example, how we have been growing as a company.  For our existing projects, we successfully secured co-financing worth in excess of PLN 95m. We have already started commercializing our first products, translating to PLN 29m in sales revenues in 2020. We are capable of generating a financial surplus, which we invest effectively in R&D. We plan to continue the research we started and intend to use some of the funds raised as part of our IPO for our own contribution in the project, which has already reached the maximum level co-financing. Specifically, we plan to further develop the HyperSat platform and launch the EagleEye observation microsatellite. We also want to gradually transition to higher-margin projects.  The share of production for industrial and private clients from the microsatellite, microsatellite component and Earth-imaging systems sectors in our revenues is starting to rise. Our goal here is to further improve sales in order to expedite the processes of securing contracts, including for satellite constellations. One such contract alone may be worth even hundreds of millions of zlotys. The IPO proceeds will help us complete our R&D projects, as well as effectively solicit new business,” explained Jacek Kosiec.

Creotech Instruments currently estimates its 2021 order backlog to be worth approx. PLN 25m, however, this figure does not include short-term projects that may bring in several million zlotys in additional revenue in the second half of the year. Relevant projects include programs from such segments as construction of microsatellites, time synchronization systems, drone flight support systems and CreoDIAS, the largest European repository of satellite data, created by the Company on behalf of ESA under a contract worth some EUR 14m.

The subscriptions for retail investors will run from 29 March to 12 April 2021 at the Maximum Issue Price of PLN 61 per share set by the Management Board.

The Offering also provides for the participation of the Company’s employees, associates and business partners, as so-called Eligible Persons, whose list specifying the number of Offered Shares attributable to each person will be provided by the Issuer to the Investment Firm no later than on the last day of subcription for shares offered as part of the Small Investors Tranche.

Creotech Instruments S.A.’s IPO schedule is as follows:

Dates

(2021)

Event
26 MarchPublication of Information Memorandum
29 MarchOpening of subscription and payment for shares as part of Small Investors Tranche
12 April

by 6.00 p.m. – for subscriptions submitted in hard copy

 

by 12.00 a.m. – for subscriptions submitted electronically

Close of subscription in the Small Investors Tranche
12 April by 12.00 a.m.Close of payments as part of Small Investors Tranche
from 8 April

by 12 April by 15.00 p.m.

Book-building among investors selected by Investment Firm
15 April by 12.00 p.m.Determining the Issue Price and number of New Shares broken down into individual tranches
14 AprilOpening of subscription and payment for shares as part of Large Investors Tranche
16 April

by 6.00 p.m. – for subscriptions submitted in hard copy

by 12.00 a.m. – for subscriptions submitted electronically

Close of subscription in Large Investors Tranche and Employee Tranche
16 April by 12.00 a.m.Close of payments in Large Investors Tranche and Employee Tranche
19 AprilOpening of subscription and payment for shares for Substitute Investors, if applicable.
By 20 AprilAllotment of New Shares  and publication of IPO results
By 23 AprilIf applicable, return of overpaid amounts (in the event of oversubscription or difference between the Maximum Price and the Issue Price)

 

Subscriptions for Creotech Instruments S.A. shares in the public offering are handled by Dom Maklerski Navigator.

Details on the course, as well as the terms and conditions of the public offering are available in the Information Memorandum available on the website of Creotech Instruments S.A.: www.creotech.pl/ofertapubliczna and Dom Maklerski Navigator S.A.: www.dmnavigator.pl

 

For more info contact:

Beata Kowalczyk, cc group
m. +48 605 959 539
e.: beata.kowalczyk@ccgroup.pl

 

Edyta Mazerska, Creotech Instruments S.A.
m. +48 691 91 00 38
e.: edyta.mazerska@creotech.pl

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