Cyfrowy Polsat hopes to raise zł.1 billion from IPO

The company expects to raise between zł. 800 million - zł.1 billion from the IPO, scheduled to take place on May 6, by offering 75 million existing shares to investors. The allocation of shares between institutional and individual investors will be based on the level of demand during book-building, scheduled for April 10-24. Cyfrowy Polsat said its 2007 revenues surged to zł.796.7 million from zł.482.5 million the year before, driven by strong growth in subscription fees. The company boasts a churn rate of just 5.7%, which it says is lower than any other pay-TV company in the world that publishes its figures. Cyfrowy Polsat plans to spend zł.62.6 million on investments this year, including zł.12.7 million on launching as a mobile virtual network operator. But it failed to publish any detailed revenue forecasts for the coming years. According to Michał Janik, analyst at DM PKO BP, the IPO could attract strong interest from investors and could even raise the profile of the Polish stock market among foreign investors. On the other hand, the share price of Agora or TVN, the leading media companies listed on the WSE, should not be adversely affected. The scale of the IPO means Zygmunt Solorz, Polsat owner, will join the ranks of the WSE's billionaire investors. (Parkiet, p. 1, 4; Puls Biznesu, p. 4-5; Gazeta Wyborcza, p. 37) R.M.