As many as seven companies have had their issue prospectuses approved of by stock exchange authorities. They could start their IPOs but they didn’t.
“We are frightened with what’s happening on the stock exchange. Next week, we will prepare a new agenda of the offer. We may lower the bottom price of the issue price”, Teresa Pietrzyk, ZM Herman meat producer deputy CEO said.
Krossglass, Pro-Bud, Hardex, Harper Hygienics, and Hoopla.pl are the remaining firms which decided to wait with their debuts.
Experts advise the same.
“It will be especially difficult to sell a big offer of over PLN 50m (EUR 13.9m) now. Funds do not buy stock. They think hard which stocks they should sell and not what to buy”, Wojciech Gudaszewski, WDM brokerage CEO said.
Pawel Puterko from ProfesCapital, a company advising at IPOs, believes that when indices fall 5 percent, IPOs should be postponed. Grzegorz Leszczynski from DM IDMSA adds that companies should launch offers in February.
A different story is Cyfrowy Polsat, the biggest digital platform in Central and Eastern Europe. The company’s prospectus was approved of on Wednesday.
“Such big and interesting company will surely be of interest to pension funds which keep raising new funds”, Wojciech Gudaszewski believed.
New Connect, the alternative market believed to be more risky, is doing better than the WSE. The stocks listed there are falling slower than those of companies present on the WSE.
“Big funds, which are now selling out their stocks, are not shareholders of such companies”, Pawel Puterko said.
62 issue prospectus are waiting for the approval of the authorities. Ludwik Sobolewski, WSE CEO, expects at least 50 debuts this year.
(PLN 1 = EUR 0.278)