In connection to the forthcoming IPO (January 25) Herti Jsc, one of the leading Bulgarian manufacturers of aluminum and plastic bottle caps, announced plans for expansion to the markets of South America (Chile and Argentina) and Africa (RSA).

The company currently exports 80% of its production and holds stakes in three foreign companies – in Romania, France and Great Britain. At the same time, Herti controls 90% of the market of aluminum bottle caps in Bulgaria. The main objectives before the company are expansion (in connection to the increased demand for plastic bottle caps in the global wine making industry), increasing production capacity, and implementation of the 4-year investment program, which is worth some 25 mln leva (12.782 mln euros).

Between 2004 and 2006 Herti invested 3.9 mln leva in increasing production capacity and improvement of the network of warehouses and company infrastructure. Another 4.16 mln leva was invested between January and September last year.

The company is currently implementing the 2007 – 2010 investment program that requires 25.895 mln leva. According to the program, Herti is to invest 11.765 mln leva this year.

Herti exports to 35 countries around the globe. Its main markets are those of the EU countries and Turkey (42.8%), Russia and the former Soviet Republics (42%), the Far East (1.5%). Inside the EU, most of the export goes to Great Britain (7.71%) and Romania (7.-6%), followed by Hungary (4.07%), Austria (3.19%) and France (1.44%).

Among Herti's clients are leading Bulgarian producers of spirits such as Vinprom Peshtera, SIS Industries, Sliven Cellar, Damyanitsa Cellar, Domaine Boyar, Menada, and some soft drinks and mineral water bottling companies – Grona Banya, Devin, A&D Commercial, as well as pharmaceutical companies (Sopharma and Actavis).

Investors may submit their subscription orders for the IPO on January 25. The results will be announced January 28. The price will be determined via book-building.

The company is offering 3 mln new shares and up to 1.4 mln existing shares with a face value of 1 lev and minimum issuing price at 3.10 leva.

If all offered shares are subscribed the company's capital may get a hike of up to 15 mln leva (7.670 mln euros).

Herti was founded in 1993 in Shumen. It produces different types of aluminum and plastic caps for wine bottles, soft drinks and mineral water bottles, olive oil containers and products of the pharmaceutical industry. It is the leading manufacturer in its field in Bulgaria and is among the top 10 in Europe.