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.
Carrying cargo may appear to be dull but worthy work, but there is also a lot of money in it, as investors in PKP Cargo, the Polish rail cargo carrier, found out during the company’s Tuesday IPO.
The share price closed up 19.4 per cent at 81.16 zlotys ($26.70), up from its initial offering price of 68 zlotys.
Laying the groundwork for the largest initial public offering this year on the Warsaw Stock Exchange, PKP, the Polish state railways announced on Wednesday that it was setting a 68 zlotys ($22.30) share price for PKP Cargo, its freight subsidiary.
PKP is selling just under half of the shares in PKP Cargo in a transaction valued at 1.4bn zlotys. The money will go towards reducing PKP’s 4bn zlotys in debt, of which 1bn zlotys is coming due.
The Warsaw Stock Exchange has long been hunting for new listings far beyond Poland’s borders, but if it looks much further than its latest new IPO it will fall into the Pacific Ocean.
The exchange’s newest listing comes from China – Peixin International Group, a manufacturer of paper products like sanitary napkins and diapers.
The Warsaw Stock Exchange has had a lacklustre year in terms of new issues. But it could end 2013 with a bang with the planned IPO of PKP Cargo SA, the country’s largest rail cargo operator and the second largest rail freight carrier in the EU.
The Warsaw Stock Exchange was the worst performer in the world on Thursday, the result of dramatic changes to the country’s pension system announced a day earlier which removed a key support for equity values.
The WSE’s broad WIG index was down by 4.16 per cent – that follows a 2.14 per cent retreat on Wednesday.
The Warsaw Stock Exchange is to launch a new, expanded WIG30 index of its 30 largest and most liquid listed companies next month.
The WSE hopes the move will boost interest among investors in the additional 10 stocks. It also hopes more of the biggest companies in central and eastern Europe will want to be listed on it.
Capitalism is supposed to be all about second acts – getting up after failing, and using the experience to do better the next time around. That’s the path taken by Ludwik Sobolewski, fired as head of the Warsaw Stock Exchange after a conflict of interest scandal who is now taking over the stock exchange in Bucharest.
Sobolewski brings experience and a bit of star power to Bucharest, which is growing well but is still a much smaller exchange than the one he leaves behind in Warsaw.
Normally, when a country’s president weighs in on a potential merger of national stock exchanges, the response is enthusiastic.
But the unexpected backing by the Czech Republic’s Milos Zeman for a merger of the Prague and Warsaw stock exchanges has instead sown confusion into central European capital markets.
The Warsaw Stock Exchange is tightening the screws on its often-unruly younger sibling, the New Connect alternative market for small companies, by halting trading in 14 companies that failed to file their quarterly reports on time.
The earliest the 14 can return to the trading floor is Thursday – if they get their paperwork in no later than the end of Tuesday.
A quiet day on the Warsaw Stock Exchange on Tuesday as it shut its doors to digest the results of its first day of a new trading system supplied by the NYSE.
The Universal Trading Platform (UTP) dramatically ramps up the WSE’s ability to trade shares – it allows for as many as 20,000 transactions a second, while the old system, called Warset, topped out at about 850 orders a second.
The old adage about getting further with honey than with vinegar holds true for flies, and looks to be just as valid for stock exchanges, as Warsaw’s exchange begins to flirt with its long-time rival in Vienna.
Bloomberg broke the news on Tuesday that the two were in talks. It looks as though discussions are still very preliminary, but the fact that they are talking and not hissing at each other is a big change – largely due to a change at the top of the WSE.
The turbulent global economy seems not to be harming the prospects of International Personal Finance, a small cash loan company with operations across central Europe and Mexico, which expects double digit revenue growth this year.
Gerard Ryan, the company’s CEO, talked to beyondbrics on Wednesday, on the day the company launched a secondary listing on the Warsaw Stock Exchange, marking Poland’s status as IPF’s largest market, with 820,000 customers.
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.
Adam Maciejewski, the new head of the Warsaw Stock Exchange (pictured), is promising to be a much lower key executive than his predecessor – probably a good thing after Ludwik Sobolewski was fired this week after being accused of trying to solicit funds from listed companies to invest in a movie starring his girlfriend.
Although he has been involved with the WSE since 1994, the quick choice of Maciejewski to replace Sobolewski was a bit of a surprise – though the fact that an insider and not a politician got the job was reassuring for market participants.