Even though there was still hope at the end of last week for success, Ingra’s first round of stock offerings recorded less than two percent of the 3,750.000 kn of new shares offered to investors.

Although there is an upcoming second round, Ingra’s attempt to raise 150 million kunas of new capital experienced a total fiasco, as the large institutional investors simply ignored the offer. Circles familiar with Ingra express a wide range reasons for the fiasco, culminating with the theory involving political pressure on investors to ignore the offer, with the pressure supposedly intensifying by the end of last week, leading investors to cancelling their stock registrations. However, pension funds have stated that there was simply no interest to participate primarily due to their investment policy, which generally does not involve increasing their Croatian stock portfolio. While Ingra does not want to (and cannot) comment on this first round fiasco, it can be assumed that the situation is of great concern to them. Their decision in forming the price was based on an assumption that the daily stock price will not greatly influence the decision to purchase the stock, since they counted on investors that would find the offer interesting as an opportunity to acquire a significant share of the company.
(American Chamber of Commmerce in Croatia – AmCham)