PLN 92.8 (EUR 24.4) – this is the price, the stock history of JW Construction started with. Investors who bought the stock in the IPO paid PLN 71, or 30 percent less.
“JW Construction is another company with very good debut. Because the reduction was big, investors were in euphoria”, Michal Sztabler from DM PKO BP commented.
“This is a big company. That’s why investors who failed to buy the stock earlier, bought more shares during the first trading”, Wlodzimierz Giller from DB Securities added.
The Warsaw Stock Exchange is going to launch a subindex of homebuilders. Along with JW Construction, ten other companies will be included.
During the day, JW Construction stock dropped to PLN 80.
“The company’s main rival, i.e. Dom Development seems to be cheaper. Gant looks even more interesting”, Michal Sztabler estimated.
Analysts believe that the homebuilding sector faces bright future.
“The margins they had in 2006 and early this year are the past. They will fall because labor and material costs increase. But there are still 3-4 times fewer flats being built in Poland than in Spain. That’s why smaller margins will be made up by bigger number of flats sold and the companies will increase incomes”, Wlodzimierz Gil said.
JW Construction raised PLN 245m in the issue. The funds will be spent to buy land.
(PLN 1 = EUR 0.263)