Cyfrowa Polsat IPO

Digital TV platform Cyfrowy Polsat's debut on the Warsaw Stock Exchange (WSE) last week brought the company a share price increase of 7.76 percent, from zł.12.5 to zł.13.47. The value of the IPO reached nearly zł.840 million. The Polsat group subsidiary offered 67.1 million shares, with 60.6 million targeted at institutional investors and 6.5 million for individual investors.

The company sees the launching of mobile virtual network operator (MVNO) services as one of its key investments in the near future, for which it will use its IPO funds. It has already launched billing and CRM systems, investing zł.18.7 million, and wants to invest up to zł.12.7 million more.

But to start the service, the firm is waiting for its partners, mobile operators Centertel and Polkomtel, to fulfill regulatory requirements. "A lot depends on the goodwill of our partners," said Dominik Libicki, president of Cyfrowy Polsat's management board.

Analysts said the debut made sense and that the company has a good chance to perform successfully on the bourse. "The company drew considerable attention from institutional investors, which is crucial," said Piotr Kuczyński, chief analyst at Xelion financial advisors.

As the third-largest media company on the WSE after Agora and TVN, the company will give them tough competition for investors. "This was visible in the first days [after Polsat Cyfrowy debuted], when the shares of Agora and TVN dropped," Kuczyński said. But he also noted that the continuing process of digitalizing the TV signal in Poland will lead to stronger competition for Cyfrowy Polsat.

Cyfrowy Polsat is the largest digital television platform in Poland and in the CEE region, boasting 2.2 million subscribers in February this year.

Last year, the company's net profit was zł.113.4 million on revenues of zł.796.7 million. The company first planned to debut last winter, but postponed its IPO due to unfavorable conditions on the stock exchange.