Media goes to market<BR>
media companies on the exchange should offer a welcome change for investors, analysts said.
"The Warsaw Stock Exchange is 43% banks. Any new departure from banking, trading and construction will be well received," said Stephen Pettyfer, Polish analyst with Smith New Court in London.
Media companies have enjoyed investor interest in other countries and there is no reason why that shouldn't happen in Poland, said Dariusz Piszczatowski, broker with Polski Bank Rozwoju brokerage house.
Echo Press will offer 500,000 shares at z*. 5 ($2.13) to the public with 300,000 for larger investors and 200,000 for smaller, individual investors. The company publishes Echo Dnia, a daily Kielce paper, which has an average daily circulation of 50,000 and a weekend circulation of 80-100,000. The four-year-old newspaper also is distributed in the Radom and Tarnobrzeg provinces.
Echo Press became a joint-stock company on June 30 with three major shareholders, Micha* So*owow with a 40% stake, and the remaining shares split equally between Wojciech Ciesielski and Emilian Berman.
The company's net profits of z*. 587,200 were up a whopping 1890% 1994 from the previous year on sales of z*. 4.4 million ($1.87 million).
Echo Press is trying to expand its activities and plans to buy up other publications in areas like Lublin and Silesia with the capital raised from the IPO.
"We know how to do this business, we succeed with Echo Press," said Adam Kubicki, assistant to the company president. In addition to expansion, Echo Press also plans a redesign for Echo Dnia that includes upgrading print quality. The company's shareholders also have stakes in supermarket chain PLI and construction company Mitex. "It's a strategy to build up companies and then take them public," said Peter Strupp, about potential IPOs for PLI and Mitex.
The second media company likely to go public also sees its IPO as a vehicle for expansion. WaWa, a top- ranked Warsaw radio station, wants to raise its capital to $1 million to increase its activities nationwide, said Wojciech Reszczynski, part-owner of WaWa/FM89.9.
WaWa plans to build stations in Poznan, Szczecin, Gdansk, Katowice, uodz, Bydgoszcz and Krakow and wants to have four hours of local programming plus the usual WaWa diet of rock music, news and cultural programs. The company has applied to the National Radio and Television Association for the necessary concession to expand nationwide.
WaWa is currently offering a closed-subscription of 800,000 to 1.2 million shares in an attempt to raise enough money to gain the concession. The station hopes to attract its own advertisers for the offering. Wawa will then hold another closed offering to the concession holders to ensure they have 51% ownership of the station as required by the broadcasting law.
WaWa's current share capital is at z*. 150,000 ($64,000) with 150,000 shares at a nominal value of z*. 1 ($0.43) with Reszczynski having a z*. 70,000 ($30,000) stake, an investor Mieczys*aw Adamski the same and an unnamed investor having z*. 10,000 ($4,260).
Reszczynski said the IPO will take place next year.
Analysts see the station's move to the exchange as a good one. "The fact that it's the first Polish radio station (to go on the exchange) might spur a lot of interest," said Piszczatowski of Polski Bank Rozwoju brokerage house.
"The Warsaw Stock Exchange is 43% banks. Any new departure from banking, trading and construction will be well received," said Stephen Pettyfer, Polish analyst with Smith New Court in London.
Media companies have enjoyed investor interest in other countries and there is no reason why that shouldn't happen in Poland, said Dariusz Piszczatowski, broker with Polski Bank Rozwoju brokerage house.
Echo Press will offer 500,000 shares at z*. 5 ($2.13) to the public with 300,000 for larger investors and 200,000 for smaller, individual investors. The company publishes Echo Dnia, a daily Kielce paper, which has an average daily circulation of 50,000 and a weekend circulation of 80-100,000. The four-year-old newspaper also is distributed in the Radom and Tarnobrzeg provinces.
Echo Press became a joint-stock company on June 30 with three major shareholders, Micha* So*owow with a 40% stake, and the remaining shares split equally between Wojciech Ciesielski and Emilian Berman.
The company's net profits of z*. 587,200 were up a whopping 1890% 1994 from the previous year on sales of z*. 4.4 million ($1.87 million).
Echo Press is trying to expand its activities and plans to buy up other publications in areas like Lublin and Silesia with the capital raised from the IPO.
"We know how to do this business, we succeed with Echo Press," said Adam Kubicki, assistant to the company president. In addition to expansion, Echo Press also plans a redesign for Echo Dnia that includes upgrading print quality. The company's shareholders also have stakes in supermarket chain PLI and construction company Mitex. "It's a strategy to build up companies and then take them public," said Peter Strupp, about potential IPOs for PLI and Mitex.
The second media company likely to go public also sees its IPO as a vehicle for expansion. WaWa, a top- ranked Warsaw radio station, wants to raise its capital to $1 million to increase its activities nationwide, said Wojciech Reszczynski, part-owner of WaWa/FM89.9.
WaWa plans to build stations in Poznan, Szczecin, Gdansk, Katowice, uodz, Bydgoszcz and Krakow and wants to have four hours of local programming plus the usual WaWa diet of rock music, news and cultural programs. The company has applied to the National Radio and Television Association for the necessary concession to expand nationwide.
WaWa is currently offering a closed-subscription of 800,000 to 1.2 million shares in an attempt to raise enough money to gain the concession. The station hopes to attract its own advertisers for the offering. Wawa will then hold another closed offering to the concession holders to ensure they have 51% ownership of the station as required by the broadcasting law.
WaWa's current share capital is at z*. 150,000 ($64,000) with 150,000 shares at a nominal value of z*. 1 ($0.43) with Reszczynski having a z*. 70,000 ($30,000) stake, an investor Mieczys*aw Adamski the same and an unnamed investor having z*. 10,000 ($4,260).
Reszczynski said the IPO will take place next year.
Analysts see the station's move to the exchange as a good one. "The fact that it's the first Polish radio station (to go on the exchange) might spur a lot of interest," said Piszczatowski of Polski Bank Rozwoju brokerage house.
