Capital Markets Notes
The company, 85%-owned by Mostostal Export, had a net profit of zl. 600,000 ($235,294) on sales of zl. 20 million ($7.84 million) in 1995. It now has a share capital of one million shares.
Salomon Brothers recommends maintaining an overweight fund allocation to Polish shares, but said the market's growth should now be less rapid. "We remain bullish on the Polish market, confident that the long-term prospects for the Polish economy and good Polish companies remain excellent," according to an April report by its London research unit. However, profit-taking after recent gains and relatively high share prices would slow the market's advance. "Future fund flows into the market are likely to be at a more moderate pace: new converts to the opportunities in Poland will be partly countered by profit-taking from recent investors," it said. Salomon said that despite the market's good position among other emerging countries, it needed to boost capitalization, at around $6 billion against annual gross domestic product of $116 billion, to attract further portfolio investment.
The broking unit of Polski Bank Rozwoju (PBR) plans to add, next month, portfolio management and stock recommendations to its services. The brokerage will manage portfolios of at least zl. 100,000 ($39,215) The brokerage plans to issue analytical reports of four or five companies monthly. The brokerage also plans to help bring companies to the over-the-counter (OTC) market. In 1995 the PBR brokerage had a pre-tax profit of zl. 2.9 million ($1.13 million) or 8.1% of the whole bank's pre-tax earnings. The results were 20.2% lower than in 1994 due to lower turnover on the WSE. The brokerage wants to focus more on the primary market to become less prone to changing activity on the secondary market. PBR brokerage ranked 11th last year among the WSE's 35 members in terms of share turnover and seventh among houses showing largest bond turnover.
Polish computer maker Optimus plans to issue up to 2.5 million new shares to be offered in exchange for a planned $30 million international issue of convertible bonds. Shareholders will vote on April 30 on a proposal to offer the shares at a 20% premium to the market price on the date when an agreement with the bond issue's underwriters is signed. Optimus said it would issue 300 five-year bonds with a par value of $100,000 each and an annual coupon of 3%, directing the bonds to international institutional investors. The company said the bonds could be converted into shares throughout the whole period of their maturity starting from the approval of the new shares for public trading. The bonds would also be redeemable after two and a half years at 112% of their par value. Optimus earlier said that the bond issue would be managed and underwritten by Merrill Lynch International. It said it planned to use the proceeds from the issue to expand its computer production, develop the company's data transmission business and to boost its working capital.
Salomon Brothers recommends maintaining an overweight fund allocation to Polish shares, but said the market's growth should now be less rapid. "We remain bullish on the Polish market, confident that the long-term prospects for the Polish economy and good Polish companies remain excellent," according to an April report by its London research unit. However, profit-taking after recent gains and relatively high share prices would slow the market's advance. "Future fund flows into the market are likely to be at a more moderate pace: new converts to the opportunities in Poland will be partly countered by profit-taking from recent investors," it said. Salomon said that despite the market's good position among other emerging countries, it needed to boost capitalization, at around $6 billion against annual gross domestic product of $116 billion, to attract further portfolio investment.
The broking unit of Polski Bank Rozwoju (PBR) plans to add, next month, portfolio management and stock recommendations to its services. The brokerage will manage portfolios of at least zl. 100,000 ($39,215) The brokerage plans to issue analytical reports of four or five companies monthly. The brokerage also plans to help bring companies to the over-the-counter (OTC) market. In 1995 the PBR brokerage had a pre-tax profit of zl. 2.9 million ($1.13 million) or 8.1% of the whole bank's pre-tax earnings. The results were 20.2% lower than in 1994 due to lower turnover on the WSE. The brokerage wants to focus more on the primary market to become less prone to changing activity on the secondary market. PBR brokerage ranked 11th last year among the WSE's 35 members in terms of share turnover and seventh among houses showing largest bond turnover.
Polish computer maker Optimus plans to issue up to 2.5 million new shares to be offered in exchange for a planned $30 million international issue of convertible bonds. Shareholders will vote on April 30 on a proposal to offer the shares at a 20% premium to the market price on the date when an agreement with the bond issue's underwriters is signed. Optimus said it would issue 300 five-year bonds with a par value of $100,000 each and an annual coupon of 3%, directing the bonds to international institutional investors. The company said the bonds could be converted into shares throughout the whole period of their maturity starting from the approval of the new shares for public trading. The bonds would also be redeemable after two and a half years at 112% of their par value. Optimus earlier said that the bond issue would be managed and underwritten by Merrill Lynch International. It said it planned to use the proceeds from the issue to expand its computer production, develop the company's data transmission business and to boost its working capital.
