PRAGUE, Czech Republic, June 23 (UPI) -- The Prague Stock Exchange's first ever initial public offering for shares in drugs firm Zentiva was five times over-subscribed, company officials say.
The success is good news for the long suffering Prague Stock Exchange, which has been dogged by a reputation for poor regulation and corporate corruption for years.
Zentiva shares were offered at a price of 485 Czech crowns and global depositary receipts were priced at $18.36. The global depositary receipts started trading on the London Stock Exchange Wednesday. The shares will begin trading on the Prague Stock Exchange on June 28.
Zentiva was valued after the initial public offering at $700 million.
Analysts said the success of the initial public offering should herald the beginning of a wave of such deals on the Prague Stock Exchange. Companies in the Czech Republic have turned to the banking sector for financing in recent years. Several are now thought to be considering using the capital markets instead.
