From the kitchen counter to the trading floor
Zelmer, which dominates the country's market in vacuum cleaners and other home appliances, will debut on the Warsaw Stock Exchange (WSE) on January 27. Its current owner, the State Treasury, decided to make 85 percent of its shares available. The remaining 15 percent will go to the employees of the company. One-fifth of the offer is designated for individual investors and the Ministry of the Treasury has earmarked an equally large reserve of shares, in case small buyers declare a high interest.
"With high demand, the Ministry will probably act just as it did in the case of PKO BP," says Ryszard Czerwiński, vice-president of the board at BZ WBK brokerage house. During the IPO of bank PKO BP last autumn authorities enlarged the private investors' tranche following unexpectedly high orders.
The company reported a steady growth of net profit in 2004, estimated at 10 percent more than in 2003. In the next 12 months this is expected to reach zł.17 million, from zł.7.9 million in 2002. Another plus for investors is that planned investment for the next three years, which totals almost zł.50 million, will be covered entirely from the company's own assets.
Despite the positive outlook for the company's debut, some questions remain. Last year's profit was lower than initially expected, because the company was forced to hold financial reserves for its partner firm, Zelmer-Bohemia, which operates in Hungary. Zelmer-Bohemia reported a zł.1.1 million operating loss in 2004. Furthermore, with one-third of revenue generated from export, this 50-year-old company is now prone to currency rate fluctuations.
"I don't mind if the euro is at zł.4.8 or zł.4 but we really hope it will stabilize at some point," says Zelmer board member Zygmunt Machcik. His last financial plan was based on a zł.4.80 for euro rate. It is now some 16 percent less.
After the privatization process is completed, Zelmer's fate will lie entirely in private hands. To ensure stability, the state is looking for a strategic investor, who could acquire 29 percent of the shares on offer. This sub-tranche will come with a two-year trade restriction to ensure that the buyer has a long-term commitment.
"With high demand, the Ministry will probably act just as it did in the case of PKO BP," says Ryszard Czerwiński, vice-president of the board at BZ WBK brokerage house. During the IPO of bank PKO BP last autumn authorities enlarged the private investors' tranche following unexpectedly high orders.
The company reported a steady growth of net profit in 2004, estimated at 10 percent more than in 2003. In the next 12 months this is expected to reach zł.17 million, from zł.7.9 million in 2002. Another plus for investors is that planned investment for the next three years, which totals almost zł.50 million, will be covered entirely from the company's own assets.
Despite the positive outlook for the company's debut, some questions remain. Last year's profit was lower than initially expected, because the company was forced to hold financial reserves for its partner firm, Zelmer-Bohemia, which operates in Hungary. Zelmer-Bohemia reported a zł.1.1 million operating loss in 2004. Furthermore, with one-third of revenue generated from export, this 50-year-old company is now prone to currency rate fluctuations.
"I don't mind if the euro is at zł.4.8 or zł.4 but we really hope it will stabilize at some point," says Zelmer board member Zygmunt Machcik. His last financial plan was based on a zł.4.80 for euro rate. It is now some 16 percent less.
After the privatization process is completed, Zelmer's fate will lie entirely in private hands. To ensure stability, the state is looking for a strategic investor, who could acquire 29 percent of the shares on offer. This sub-tranche will come with a two-year trade restriction to ensure that the buyer has a long-term commitment.
