The Croatian government has set the share price for its initial public offering of 15 percent of oil concern INA, due to be listed on Zagreb and London exchanges this week, at 1,690 kuna ($303.1) per share. The government said it would allocate 54 percent of the stock to Croatian citizens, while the remainder will be sold to local and foreign institutional investors. Foreigners will get about two-thirds of that, Sanader said.
Our view: At the price of HRK 1,690 per share INA will be trading at 19.5x 2006F P/E, 86% above the CEE Oils average and at 18.4x 2007F P/E, 78% above the average. It looks that investors believe in growth potential of the company.