Subsidiaries Xeikon, Strobbe Graphics and basysPrint will all be transferred to a single company known as PunchGraphics before the listing, which is planned for completion by the end of June 2005.

Punch chief financial officer Jan Smit said that the IPO of the three companies would create working capital for Punch to expand its graphics business through further acquisitions and product development, but would not lead to a merger of either the companies or their brands.

He added that the consolidation reinforced Punch's graphics division as a "well-defined club" in the sector.

The group has appointed Philips International senior vice president Dick Tilanus to head up the new subsidiary as its chief executive of the three businesses.

Punch International is already listed on Euronext Brussels and is part of the NextPrime index.

Story by Josh Brooks