Masterplast Group to publicly raise 8-10 billion HUF of funds

The public retail share subscription starts on 5 October 2022. Shares to be issued now can exclusively be subscribed to at OTP Bank, and are available to retail and institutional customers. By public retail and institutional share sales, in the event of oversubscription, Masterplast is to sell no more than 2,300,000 new shares.

Budapest, 27 September 2022. – Masterplast is a professional manufacturer of thermal insulation systems and elements improving building energy efficiency. Its products contribute to the sustainable reduction of energy used for heating/cooling buildings while maintaining everyone’s comfort and lifestyle. By reducing energy use, carbon emissions can also be reduced.

BÉT Zrt CEO – Richárd Végh, Masterplast Nyrt President – Dávid Tibor, Masterplast Nyrt Vice President – Balázs Ács, Masterplast CEO – Róbert Nádasi, Head of Capital Markets Origination and Securities Services at OTP Global Markets – András Kazár.

BÉT Zrt CEO – Richárd Végh, Masterplast Nyrt President – Dávid Tibor, Masterplast Nyrt Vice President –  Balázs Ács, Masterplast CEO – Róbert Nádasi, Head of Capital Markets Origination and Securities Services at OTP Global Markets – András Kazár.

 Masterplast, founded 25 years ago, is the biggest Hungarian-owned construction material manufacturer that plays a significant role both in the region and the European markets. The company having been listed on the Budapest Stock Exchange for over 10 years is currently the seventh biggest public company in the Hungarian market, furthermore, an experienced European player: it owns subsidiaries in 10 countries (Hungary, Germany, Italy, Slovakia, Poland, Romania, Ukraine, Serbia, Croatia and North Macedonia) and is the second biggest glass fibre manufacturer in Europe. As a manufacturer, the company is an important supplier to other European construction material sellers in Europe, and due to its exports, it is present in most European markets.

Masterplast Group is on a dynamic growth trajectory with a significant increase in its revenue in the last few years: In 2021, its consolidated revenue reached 191.5 million EUR, with its EBITDA of 22.8 million EUR and 16.1 million EUR profit after tax. In the first half of 2022, the company increased its sales of building energy modernisation-related thermal insulation products by 63%, and the half-year total shows a considerably higher profit compared to last year’s same period. In the first six months of 2022, its revenue reached 109.1 million EUR, with its EBITDA of 13.6 million EUR and 11.5 million EUR profit after tax.

Masterplast’s growth strategy is based on its rapid expansion of production through greenfield investments and acquisitions. Currently, its markets are supplied by 8 manufacturing plants located in 3 countries (Hungary, Germany, Serbia) but Masterplast is to open three additional thermal insulation material manufacturing plants next year.

The following important step in the company’s growth and future-making strategy is to launch mineral wool thermal insulation manufacturing, which the company plans to finance by capital raising. Therefore, it wishes to raise funds of about 8-10 billion HUF by public retail and institutional share sales in October.

The profit forecast does not take into account the effects of the received state aid regarding rock wool investments and the 100% share of ownership acquired from T-CELL Plasztik Kft.

Insulation materials made of mineral wool are used across the buildings, from attics and roofs to plinths, including basement structures, separations between floor slabs, facades, and plasterboard wall insulations, in each type of building, like offices, industrial halls, detached houses or apartment buildings.

Shares issued by Masterplast Nyrt were introduced to the Budapest Stock Exchange (BÉT) on 29 November 2011. To finance its investments, Masterplast successfully raised capital through stock exchange transactions in 2012. The company’s shares have been listed in the premium category since 2017.

Share subscription period

For retail customers, the share subscription period for Masterplast shares to be issued starts at 9:00 on 5 October 2022 and finishes at 14:00 on 14 October 2022. For institutions, the share subscription period starts at 9:00 on 10 October 2022 and finishes at 18:00 on 14 October 2022.

Share subscription process

OTP Bank will be the event’s organiser and the sole distributor of shares. Retail investors can indicate their interest in subscribing to the shares to be issued in person at the designated OTP Bank branches, online by using OTPdirekt internet banking, or via OTP Bank’s telephone customer service, whereas the private customers of OTP can also do it by informing their private bank advisors. Having a securities account at OTP Bank is a prerequisite for the share subscription.

Retail customers can make offers for subscriptions between 4,000 and 4,400 HUF, with the maximum offer of 4,400 HUF, provided the amount equal to the amount to be subscribed is available on the person’s OTP Bank account at the time of handing in the Share Application Form. The final price will be set mutually within the price range by the issuer and the distributor after the institutional share subscription period has finished. If the final price of shares is lower than the maximum share price given, the difference will be reimbursed to the retail investors.

“Energy crisis and meeting climate targets made energy-related modernisation of buildings more urgent, therefore we are expecting a continuous expansion of the thermal insulation market”, said Masterplast Nyrt. President Dávid Tibor. “Innovation and rapid manufacturing development have always been key elements of Masterplast’s future making strategy. This is justified by our current investments which aim to start the operation of three new thermal insulation factories in Hungary, Italy and Serbia next year. By these share sales, we are going to fund our manufacturing capacity expansion as we wish to enter the market of mineral wool thermal insulation material manufacturing, which has lately been characterised by supply issues across Europe. This segment has great sales potential due to the constantly growing demand, but the availability of manufacturing capacities is limited. By capital raising, we can enable Masterplast to strengthen its position as a leading thermal insulation material manufacturer in Central Eastern Europe. We believe that the timing is perfect as the decade of insulation has started. To fulfil our goals, we chose the professional team of OTP Bank to be our partner, since as the biggest Hungarian provider of private banking, they possess the necessary skill set and knowledge to assist with performing transactions successfully”, added the president.

“We are proud that OTP Bank was chosen to be the share sales organiser and the sole distributor of shares issued by Masterplast, an exceptionally successful Hungarian company with a significant international presence. As a company with liability, our bank pays special attention not only to social responsibility and ethical corporate management but also to environmental consciousness. We find it extremely important that OTP Bank’s priorities, namely meeting climate targets, are also backed by Masterplast with its conscious operations and thermal insulation material manufacturing, which is its main activity. It is particularly relevant in this current energy crisis when reducing energy bills is one of the most important issues we have to deal with. We are certain that Masterplast’s range of thermal insulation products, also improving thanks to this share issuance, will assist in facing this challenge”, said Head of Capital Markets Origination and Securities Services at OTP Global Markets András Kazár.

The above-mentioned information is not exhaustive, for further information about the share issuance and subscription, including a list of designated bank branches, please visit www.otpbank.hu/masterplast. 

Additional information

All the information in this prospectus regarding Masterplast is based on information provided by Masterplast.

Per Regulation (EU) 2017/1129, this prospectus qualifies as advertising. This prospectus aims to provide all investors with the same regulated information and hence Masterplast Nyrt. (hereinafter ‘Company’) is to provide full transparency, furthermore to comply with regulations (EU) 2017/1129, (EU) 2014/596, and the capital market regulations under Act CXX of 2001 on the Capital Market (Act on the Capital Market). Regarding information in this prospect, the Company published a simplified prospectus related to securities issuance, complying with regulation (EU) 2017/1129 approved by the Hungarian National Bank (MNB), available on the website of the Budapest Stock Exchange, MNB’s website for prospectuses, the company’s website at https://masterplast-reszveny.hu, and the website of the sole distributor OTP Bank Nyrt. at www.otpbank.hu/masterplast. The MNB approved the simplified prospectus concerning the completeness, comprehensibility and consistency related requirements regulated by regulation (EU) 2017/1129, therefore it cannot be considered as an offer referring to the quality of the Company or its securities. This document is only for informing and awareness-raising purposes. Before making investment decisions, for more details, and the terms and conditions, please carefully read the simplified prospectus on the distribution of shares to the public. Please carefully consider the subject and risks of investment, the related fees and charges, the possibility of making a loss, and find out more about the product and investment-related tax regulations. Any risks emerging from the investment, or from specific unique decisions will be taken by the customer; OTP Bank Nyrt. cannot be held liable for the profitability of investments or the achievement of customer goals. Information published in this document does not qualify as investment advice nor an offer, recommendation, or call for proposal to execute the transaction. Information published in this document does not take into account the individual circumstances of the potential investors, therefore this prospectus exclusively is not an adequate basis for decision-making. Changes in the money and capital market, exchange rates, and trends in investments and their returns are influenced by a combination of several factors, including the significant factor of changes in investor expectations. Each investment carries certain risks, which might affect the profitability of the investment decision, and thus the investor might not receive the expected returns from their investment, or the amount invested, therefore the invested capital may possibly reduce or become completely lost. Share prices constantly change, and immediate selling can be executed on the current exchange rate, which may result in exchange rate losses. In the case of each product and service, please evaluate their tax accounting or other tax-related implications, considering that they can only be concluded under the effective tax regulations and the individual circumstances of the customer, and these circumstances may change in the future.