Dom Developer's expansion plans to include 2003 IPO?

One of the largest property developers, Warsaw-based Dom Development (DD), plans to make its IPO on the Warsaw Stock Exchange (WSE) in mid 2003 and raise zl. 100 million capital through the flotation. "I cannot confirm this information for now, but we might enter the bourse," said company president Jaroslaw Szanajca. According to Puls Biznesu, DD is planning to complete all necessary formalities by March 2003 and enter the WSE in June. As a result of this move, British Woodsford's share in DD would fall from its present 80% to around 50%. DD wants to raise funds to buy attractive development plots. Analysts forecast many problems for the IPO. "Developers activities are in the high risk category, especially if the company only focuses on constructing apartments," said BGZ analyst Michal Sztabler. He added that investors would compare the offer of Dom Development with that of Echo Investment, a similar company present on the WSE, but which diversified its activities and so helped secure its success. Other analysts believe that if the IPO is directed at institutional investors then it would have a far greater chance of success. (Puls Biznesu, pp. 1, 5) M.M.