Digital Network: Epicom sold nearly 20% of shares at a steep discount in accelerated bookbuilding

Sale through accelerated bookbuilding

• Epicom, controlled by Digital Network founder Dariusz Stokowski, sold 19.8% of the company's shares at PLN 290 each.
• The price was PLN 67 below Wednesday's close, and the shares fell about 15–16% on Thursday.
• Demand let the seller place a package nearly two-thirds larger than planned, cutting its stake to about 29.9%.

Epicom Limited, the largest shareholder of Digital Network, sold 901.8 thousand of the company's shares in an accelerated bookbuilding process. The price was PLN 290 per share, PLN 67 below the Wednesday close (Digital Network ABB: Epicom zbył 19,8 proc. akcji po 290 zł – StockWatch.pl) (Największy akcjonariusz Digital Network sprzedał prawie 20 proc. akcji ze sporym dyskontem – pb.pl). Trading on Thursday opened with the stock falling about 16%, and by mid-morning it was still down roughly 15%.

Larger deal than planned

The offer was initially announced as a smaller block. Strong demand let the seller place a package nearly two-thirds bigger than the original plan. After the sale, Epicom's stake fell to about 29.9% from 49.76% (Dariusz Stokowski sprzedał ponad jedną trzecią swojego pakietu Digital Network – Parkiet).

Who is selling

Epicom is a Cypriot vehicle controlled by Dariusz Stokowski, founder of Digital Network, formerly known as 4Fun Media. Before the transaction it held just under 2.3 million shares, equal to 49.76% of capital and the same share of votes at the general meeting. The company sells advertising space on digital screens in cities and along motorways.

Market reaction

The share price drop reflects the size of the discount. Analysts at DM BOŚ warned that the stock could stay weak in the short term.

Amount raised

According to Parkiet, the sold shares were worth more than PLN 261 million.