Poland privatisation

Initial public offerings, especially those tied to privatisations by Poland’s treasury ministry, have the reputation for being money spinners, but there is no such thing as a risk-free investment, as punters are learning on Wednesday on the Warsaw Stock Exchange. The shares in Energa, the country’s third largest power distributor, sagged in the first hours of trading.

Energa launched on the WSE in a privatisation worth 2.4bn zlotys ($787m), the bourse’s largest IPO in two years. 

Source: company

Sebastian Mikosz is a man in a hurry.

Only four days after taking over Poland’s Lot Airlines, the new chief executive (who also headed the company in 2009-10) is racing to turn around the loss-making flag carrier as quickly as possible and to put the government-owned airline on the market before the end of this year. 

Poland’s real estate sector has been a little lacklustre in recent years, but that has not not dissuaded investors from taking a flyer on PHN, a government controlled property holding which had its IPO on the Warsaw Stock Exchange on Wednesday.

Shares were up by 7.4 per cent to 23.62 zlotys ($7.67) on the WSE, valuing the company at just over 1bn zlotys. 

Poland’s treasury ministry expects to present its programme on using state assets to boost infrastructure investments to the country’s cabinet in the next couple of weeks, which could see the first use of a special investment vehicle in the second quarter of next year. That’s according to Pawel Tamborski, a deputy treasury minister. 

In the past, when Poland’s treasury ministry sold off big state controlled companies through the Warsaw Stock Exchange there was a frisson of excitement among investors – something that seems to be missing ahead of next week’s debut of power producer ZE PAK.

Earlier this week the government set the share price at 26.20 zlotys ($8.19), near the very bottom of its bookbuilding range of 26-33 zlotys, according to Reuters.