Pulawy chemical producer to raise PLN 298m in stock market

APA - Austria Presse Agentur
opublikowano: 13-10-2005, 14:53

Warsaw (Puls Biznesu) – New shares of Zaklady Azotowe Pulawy, Poland’s nitrogen producer, have been evaluated at PLN 54 (EUR 13.8) each, the higher end of the range. Analysts believe that the shares will not be as popular as in earlier privatisation processes. Initially, Pulawy was going to raise even PLN 350m but now it offers 5.

Warsaw (Puls Biznesu) – New shares of Zaklady Azotowe Pulawy, Poland’s nitrogen producer, have been evaluated at PLN 54 (EUR 13.8) each, the higher end of the range. Analysts believe that the shares will not be as popular as in earlier privatisation processes. Initially, Pulawy was going to raise even PLN 350m but now it offers 5.5m shares, which means income of PLN 298m in the best case.

The company has recently revised its forecast down by nearly 40 percent. Good news is that it happened before its IPO because now you can buy shares cheaper and without the risk of unfavourable news, Michal Majerski, Erste Securities analyst commented.

In his opinion, Pulawy will not manage to reach the level of share price increase as did PGNiG, Poland’s gas monopoly. New shares of the latter rose 34 percent at the opening.

Pulawy is a smaller company which probably will not be included into WIG20 index. This means that foreign investors will not care to have them in their portfolios, he added.

According to unofficial sources, small investors whose subscription ended on October 10th, may expect 90 percent reduction. Financial institutions who end subscription today, will also face oversubscription. Small investors will be offered 1.87m shares while institutional ones nearly 3.64m. The three-year investment programme of Pulawy provides for expenditures of PLN 700m, including investments in new products, higher capacity and better efficiency of installations.

(PLN 1 = EUR 0.256)

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