BACA's WSE listing "logical next step"
By Aleksander Nowacki
Last week's listing of Bank Austria Creditanstalt (BACA) on the Viennese stock exchange was the largest initial public offering (IPO) in Europe so far this year. Although Austria's largest bank gave up the idea of listing simultaneously on the Warsaw Stock Exchange (WSE), the possibility remains that it will do so this autumn.
"Warsaw, as the largest exchange in the region, would be a logical next step," said BACA's international public relations officer, Ildiko Füleredi. She explained that the decision to concentrate solely on the Vienna market was caused by difficulties with meeting the deadline for the IPO.
Polish institutional investors are said to have taken part in the book-building process of BACA shares. According to unconfirmed reports, five domestic asset management funds put up capital to the tune of up to €15 million (zł. 66.6 million) to purchase BACA stock. Analysts speculated that the success of the offering could be favorable to the WSE listing.
"It would be an important event if the bank decided to list (on the WSE)," said Artur Szeski of Pekao SA brokerage. "It's a large bank, which would offer an attractive investment option to the players on the local market. Even more importantly, it might prove a trailblazer for other foreign companies." Szeski went on to say that several companies, such as food producer Podravka and pharmaceuticals manufacturer Pliva, both based in Croatia, had considered listing on the WSE but were discouraged by procedural difficulties. Should BACA surmount these problems, it could serve as an example to other foreign companies looking to list on Polish markets.
BACA management is happy with investors' response to the IPO, Füleredi added. Together with an extra offering, triggered by over-subscription, the bank collected around €1.1 billion (zł. 4.9 billion) from the market. She described the IPO as "our great success."
Analysts are, however, concerned that the stock's debut below the issuance price of E29 last Wednesday could put the Warsaw plans in jeopardy. The bank declined to comment on stock price fluctuations.
According to Arkadiusz Hajduk, public relations director at CA-IB brokerage, BACA's subsidiary company in this country, the fall in share price was likely caused by hedge funds, which seek to quickly withdraw their funds from investments.
BACA will use the funds collected from the Vienna exchange to finance its expansion plans in the region. Its operations include this country's third largest bank, PBH PBK. That, along with the WSE's prominence among central European exchanges, serves as an argument in favor of listing here, Füleredi said.
Szeski was keen to emphasize that it would be easy to draw far-fetched conclusions from BACA's plans. "It could be a step towards the WSE assuming a regional, rather than merely local, role," he said. "But these aspirations are a thing of the distant future." He explained that until problems such as a strategic alliance for the WSE are resolved, any talk of a rise in its importance would be pure speculation.
