PGNiG IPO irregularities are scrutinised by SEC

Some individual clients received more shares than the maximum amount permitted by the issue prospectus, according to which one person could not receive more than 200,000 shares, while some people acquired even more than 1 million shares. "The situation in which investors acquired large amount of shares is possible if they were subscribed by their brokerage house, which listed them among institutional investors," explained Łukasz Dajnowicz, spokesman of KPWiG. Another controversy arose in relation to the fact that the management board members of PGNiG and the president of brokerage house BDM PKO BP Jan Kuźma purchased shares in the tranche designated for institutional investors. "Distribution of shares was accepted by the supervisory board. I see no conflict of interest in the activities of corporate bodies of PGNiG," said president of PGNiG Marek Kossowski. All of irregularities are being closely investigated by the KPWiG and some of them may not only concern unethical behavior. (Puls Biznesu, pp. 1, 4) M.M.