Polish PKN Oil Group Enjoys Strong Bourse Debut

With the initial public offering heavily oversubscribed international and local fund managers needed to buy the stock to properly reflect the weight PKN will have on the bourse, where it will be the second-largest company.
The oil company will make up some 10 percent of the WIG index when it is included next week.
PKN was by far the most traded stock in the morning single price auction system, with turnover of 309 million zlotys ($73 million), some two-thirds of total trade.
"The price is pretty high and it should provide a good way out for many who bought PKN in the IPO and wanted to make a quick profit," said a Warsaw-based analyst.
The IPO of some 30 percent of the oil group was 14 times oversubscribed in the domestic retail tranche and four times oversubscribed in the book building phase abroad. It was the largest public offering in central Europe this year.
But analysts said PNK's upside was limited by the likely sale of some of the 60 million shares allocated to employees, which will be permitted to trade at the end of November.
"PKN's price should oscillate between 20 and 23 zlotys in the next few days," said Marek Juras, an analyst at Erste Securities in Warsaw.
With the 22.2 zloty debut price, PKN group is valued at 9.3 billion zlotys, or $2.2 billion, and is Poland's second-largest public company after telecoms firm Telekomunikacja Polska SA .