Plugging the pipe
Polish Oil and Gas (PGNiG), had announced that it would debut on the Warsaw bourse on July 4, after the Polish Securities and Stock Exchange Commission approved the share sale last month.
But Socha has now said that he favors a later date, and that it was not up to PGNiG to make the final decision on when to sell the 900 million new shares, which are expected to be worth around zł.1.5 billion.
"I think the offering is possible between September 2 and September 25, but it has to be discussed over the coming months so that it does not raise any doubts during the [parliamentary election] campaign," he said.
Some analysts worried that a July debut would be too close to the IPO of state-controlled oil company Grupa Lotos, due later this month. They say the market might have trouble absorbing so much new supply quickly, pushing down demand for shares in both companies.
Cash-rich local funds dismiss those fears. They say that PGNiG's dominant position (97 percent of the domestic natural-gas market), an expected market value of above zł.10 billion and future listing on the blue-chip WIG 20 index are enough to raise sufficient interest in the sale.
"Depending on the issue price, there should be large interest in the stock," said Marek Mikuc, fund manager at TFI Allianz.
Analysts speculate that PGNiG's early schedule announcement signaled apprehension that its privatization could be scuttled by pre-election political wrangling.
Both the Civic Platform (PO) and Law and Justice (PiS) parties, which are expected to win in September's elections, want the government to suspend the sale, claiming it could complicate future talks on the diversification of gas supplies to Poland.
The Treasury has dismissed these arguments, saying that since the state would keep a majority stake in PGNiG, it would control the firm's strategic decisions.
In Q1 this year, PGNiG posted zł.3.8 billion in revenues and zł.594.7 million in profits. (Reuters)
But Socha has now said that he favors a later date, and that it was not up to PGNiG to make the final decision on when to sell the 900 million new shares, which are expected to be worth around zł.1.5 billion.
"I think the offering is possible between September 2 and September 25, but it has to be discussed over the coming months so that it does not raise any doubts during the [parliamentary election] campaign," he said.
Some analysts worried that a July debut would be too close to the IPO of state-controlled oil company Grupa Lotos, due later this month. They say the market might have trouble absorbing so much new supply quickly, pushing down demand for shares in both companies.
Cash-rich local funds dismiss those fears. They say that PGNiG's dominant position (97 percent of the domestic natural-gas market), an expected market value of above zł.10 billion and future listing on the blue-chip WIG 20 index are enough to raise sufficient interest in the sale.
"Depending on the issue price, there should be large interest in the stock," said Marek Mikuc, fund manager at TFI Allianz.
Analysts speculate that PGNiG's early schedule announcement signaled apprehension that its privatization could be scuttled by pre-election political wrangling.
Both the Civic Platform (PO) and Law and Justice (PiS) parties, which are expected to win in September's elections, want the government to suspend the sale, claiming it could complicate future talks on the diversification of gas supplies to Poland.
The Treasury has dismissed these arguments, saying that since the state would keep a majority stake in PGNiG, it would control the firm's strategic decisions.
In Q1 this year, PGNiG posted zł.3.8 billion in revenues and zł.594.7 million in profits. (Reuters)
