It's good to be listed

Over 90 percent of the companies that debuted on the Warsaw bourse between 2004 and 2006 would opt for the same move if they were to decide again on the best development strategy for their firm, reveals "Destination - Bourse," a report drafted by KPMG and the Warsaw Stock Exchange (WSE).

Some 70 percent of surveyed managers said that the main reason for floating their companies' shares was to acquire additional capital, but other motives were also noted, such as boosting the company's credibility and prestige or enabling former shareholders to dispose of their shares. One in four managers questioned also pointed to the great marketing effect of the company's IPO and the fact that floating shares is a good way of assessing a company's market value.

"The bourse was for us the best way to present the company to the market. Bioton is now becoming a global enterprise and floating its shares on the WSE made it possible for us to show our results and plans and verify them against small, medium and big investors' expectations," Adam Wilczęga, CEO of Bioton, told WBJ. "If a company wants to be credible, it has to be transparent," he added.

This transparency, however, is also one of the major concerns of the companies that are preparing for an IPO. Almost 60 percent of those surveyed expressed apprehension about exposing the details of their business to other players on the market and publicizing information they could keep to themselves. According to the KPMG report, in the case of 80 percent of surveyed companies, the fears turned out to be ungrounded.