ecotel communication ag / IPO



Corporate-announcement transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement.

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Greenshoe completely placed

Duesseldorf, March 27, 2006 – The initial public offering by network-independent telco ecotel communication ag was oversubscribed by a factor of more than 4.5. Around 90 percent of the shares have been placed with institutional investors, and about ten percent with private investors. The issue price was already set on Friday afternoon at EUR 17.00 and is at the higher edge of the book-building range of EUR 14.00-17.00.
After inclusion of the full greenshoe, a total of 1,055,000 shares were placed. Of this figure, some 90 percent were placed with German and European institutional investors. About 10 percent have been allocated to private investors in Germany. After complete exercise of the greenshoe, freefloat comes to 30.1 percent. After the completion of the capital increase, the Company’s capital stock has been raised to EUR 3,500,000, sub-divided into 3,500,000 ordinary shares without a par value.
“We are very gratified by the successful course of the IPO. At the end of the day, the positive feedback we received from investors throughout the roadshow is reflected in the order book. The fact that the offer has been oversubscribed by more than a factor of 4.5 and the high quality of the order ledger are proof of the confidence shown in our business model and of ecotel’s growth potential,” said Peter Zils, CEO and co-founder of ecotel communication ag.

Owing to the oversubscription of the IPO, it was not possible to meet all applications for subscriptions. The allocation to private investors was undertaken in line with the principles for allocations to private investors issued by on June 7, 2000 by the Exchange Experts Commission (Börsensachverständigenkommission) attached to the German Federal Ministry of Finance. Accordingly, a uniform criterion was applied (“standardized allocation“) by the lead manager Baader Wertpapierhandelsbank AG. Thus all that had forwarded client orders from private investors were granted a uniform allocation of 114 shares each for every fourth order placed. Banks that had forwarded a total of less than two client orders received no share allocation.

Trading in the ecotel share (SIN E4C, WKN 585434) on FWB, the Frankfurt Stock Exchange, is scheduled to commence on March 29, 2006 in the Open Market and it will be included in the Entry Standard segment. ecotel communication ag’s plan is, however, to switch to the Prime Standard segment after switching over accounting from the German Commercial Code (HGB) to international accounting standards (IFRS).

About ecotel: 

ecotel is a network-independent telecoms provider founded in 1998, immediately after liberalization of the telco market. In what has to date been its core division, “Solutions for Business Clients“, the company provides voice, data and value-added services to small and medium-sized enterprises in particular, as well as direct access for voice and data traffic from a single source. Nationwide, more than 25,000 corporate clients now make use of ecotel’s standardized and customized telecom solutions.

ecotel has brought its products and services for telecoms corporation and non-branch promoters as well as Wholesale services together in its rapidly growing second division of “Re-Seller Solutions”. Systems developed in-house and modern switching technology constitutes the interface between the two divisions and thus enables bundling of services and telecommunications solutions on the basis of new technological standards at favorable rates, e.g., IP services incl. VoIP (Internet telephony).
ecotel communication ag is headquartered in Düsseldorf. In early 2006, a second hub was opened in Munich. At present, the company has a payroll of some 100 staff. In 2005, the telecoms provider placed no. 8 in the Deloitte “Technology Fast 50” competition. In other words, it is among the Top 10 fastest-growing technology companies in Germany.


Please note:

This publication does not constitute an offer for the sale of shares in the company or a solicitation of an offer for the purchase of shares in the company. Such offer is exclusively be made through and on the basis of a securities prospectus which has been published by the company as part of the offering and has been made available on the web site of the company under www.ecotel.de. The shares have been sold already. A printed version has been made available free of charge by Baader Wertpapierhandelsbank AG, Weihenstephaner Str. 4, 85716 Unterschleissheim or ecotel communication ag, Prinzenallee 9–11, 40549 Düsseldorf.
 
This document must not be distributed outside of Germany, in particular not in the United States of America, to “U.S. persons” as defined under the Securities Act of 1933, or to publications with a general circulation in the United States. Each violation of such limitations may constitute a violation of applicable securities laws





For further information, please contact:

ecotel communication ag

Annette Drescher (Assistant to the Board of Directors) Tel.: + 49 211-55 007-740
Fax: + 49 211-55 007 5 740
E-mail: presse@ecotel.de

For further information please visit www.ecotel.de.

DGAP 27.03.2006 

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language:     English
company:      ecotel communication ag
              Prinzenallee 9-11
              40549 Düsseldorf Deutschland
phone:        +49 (0) 55 00 7300
fax:          +49 (0) 55 00 75300
email:        achim.theis@ecotel.de
WWW:          www.ecotel.de
ISIN:         DE0005854343
WKN:          585434
indices:      
 
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