Cold market greets BZ WBK
As an indication of the weak state of the Warsaw Stock Exchange (WSE) after the attacks on New York, the planned sale of a tranche of employee shares by one of Polands largest listed banks, Bank Zachodni Wielkopolski Bank Kredytowy (BZ WBK), saw very limited trading last week.
Only 8% of the 5.7% of total BZ WBK shares held by the banks staff was traded in the week ending Sept. 21. Most employees preferred not to sell at the lower prices on the WSE, said BZ WBK press officer Piotr Gajdziński. Maybe theyll rebound in the near future.
Due to the share sale, the banks free float would increase to 25% from 19.5%. The move was an attempt by the bank to increase its liquidity by allowing employees to sell the almost 4.2 million shares they received when the bank was privatized. The 5.7% tranche of the banks total capital is valued at about zł. 150 million ($35.7 million).
The shares give the larger investors a chance to increase their stake in the bank and analysts said pension funds could be the most interested buyers. If the selling pressure increases as the general mood improves, we see pension funds as the best purchases, Gajdziński said. They are stable and a long-term bet.
Since the banks debut on the WSE on June 25, its shares have fallen to about zł. 36-zł. 37 per share. The employees shares fell 3% to zł. 35 a share in last Mondays trade, on turnover of 312,000 shares the highest since March 2000. The fall should be short term, analysts said. BZ WBKs share price slid to zł. 34 at the close of trade Thursday.
The shares were taken by the banks employees when the bank was privatized.
AIB European Investments is the largest shareholder in BZ WBK, with a 70.5% stake. The state treasury holds 4-5%.
