An investor's horn of plenty
The number of IPOs has mushroomed to several a month this year, leaving analysts without a doubt that the Warsaw Stock Exchange (WSE) is booming. And it's not only state-owned giants who are making their bourse debuts, but new capital as well.
"We see that now a lot of private companies are seeking their chance on the trade floor, and that is a positive sign," says vice president of the WSE Piotr Szeliga.
Of the three companies, only Pekaes Group is owned by the state-the Polish Treasury controls over 51.5 percent of its shares. Pekaes, one of Poland's largest transport companies, hopes to gain zł.160 million from the public offering. The funds will be invested in infrastructure, new trucks and takeovers of smaller players in the transport and logistics sector. Despite a fall in revenues, the firm has managed to increase its net profit year after year since a net loss in 2001, as it continues to sell unprofitable subsidiaries.
The debut of TVN SA, which will take place December 7 or 8, is causing a stir not only in the business world but in the media world as well. The very first television station to join the Warsaw bourse could capitalize on high brand recognition, since well-recognized companies raise interest among occasional investors. Despite the potential, just 15 percent of the 15.9 million shares are destined to reach individual buyers. The vast majority will be sold to institutional investors in Poland and abroad.
TVN has posted some promising financial results. In the first nine months of 2004, revenues rose by a steady 22 percent against the same period last year. Since that time, net profits have more than doubled, from zł.44 million to almost zł.104 million. The nature of television might be discouraging for investors, The company is dependent on one major source of income: advertising. In TVN's case, ad income constituted 86 percent of the total.
TVN's IPO might be just what the sector needs on the WSE. Media firms are highly underrepresented on the trading floor.
"The activity we are expecting will make the media sector a more exciting place for investors, and it will also increase the profile of the exchange," Deutsche Bank Securities' Włodzimierz Giller told the WBJ earlier this month.
In this cornocopia of companies operating in different sectors, footwear producer CCC Group plays the smallest roll. CCC distributes its products through 265 retail points, about 60 of which are official brand stores. Seventy-five percent owned by its founder and largest single shareholder Dariusz Miłek, the firm posted a zł.197 million revenue for first three quarters, which gave it a 5 percent share in retail footwear sales. As in the case of Pekaes SA, CCC Group has suffered a decrease in revenues while enjoying a boom in profits, which rocketed higher by 91 percent year-on-year.
"We see that now a lot of private companies are seeking their chance on the trade floor, and that is a positive sign," says vice president of the WSE Piotr Szeliga.
Of the three companies, only Pekaes Group is owned by the state-the Polish Treasury controls over 51.5 percent of its shares. Pekaes, one of Poland's largest transport companies, hopes to gain zł.160 million from the public offering. The funds will be invested in infrastructure, new trucks and takeovers of smaller players in the transport and logistics sector. Despite a fall in revenues, the firm has managed to increase its net profit year after year since a net loss in 2001, as it continues to sell unprofitable subsidiaries.
The debut of TVN SA, which will take place December 7 or 8, is causing a stir not only in the business world but in the media world as well. The very first television station to join the Warsaw bourse could capitalize on high brand recognition, since well-recognized companies raise interest among occasional investors. Despite the potential, just 15 percent of the 15.9 million shares are destined to reach individual buyers. The vast majority will be sold to institutional investors in Poland and abroad.
TVN has posted some promising financial results. In the first nine months of 2004, revenues rose by a steady 22 percent against the same period last year. Since that time, net profits have more than doubled, from zł.44 million to almost zł.104 million. The nature of television might be discouraging for investors, The company is dependent on one major source of income: advertising. In TVN's case, ad income constituted 86 percent of the total.
TVN's IPO might be just what the sector needs on the WSE. Media firms are highly underrepresented on the trading floor.
"The activity we are expecting will make the media sector a more exciting place for investors, and it will also increase the profile of the exchange," Deutsche Bank Securities' Włodzimierz Giller told the WBJ earlier this month.
In this cornocopia of companies operating in different sectors, footwear producer CCC Group plays the smallest roll. CCC distributes its products through 265 retail points, about 60 of which are official brand stores. Seventy-five percent owned by its founder and largest single shareholder Dariusz Miłek, the firm posted a zł.197 million revenue for first three quarters, which gave it a 5 percent share in retail footwear sales. As in the case of Pekaes SA, CCC Group has suffered a decrease in revenues while enjoying a boom in profits, which rocketed higher by 91 percent year-on-year.
