Polsat's IPO indecision

Polsat will probably delay its long-awaited IPO yet again, this time for another year. Last year, company officials suggested the issue could be held at the end of December 2005. Three months later they proposed it could be held in the first quarter of 2006. Now those plans have been shelved, mainly due to delays in the implementation of SAP software and international accounting standards, company officials say. The company also wanted to issue bonds worth E200 (zł.760) million before the share offer, but this idea was put on hold at least until the IPO is completed. In September, Polsat officials estimated the value of the offer could reach between R200-300 (zł. 771-1,157) million.

When Polsat finally does appears on the bourse, it would serve the company well, analysts say.

"I am sure the market would be delighted to see Polsat on the bourse," Tomasz Mazurczak, BRE Investment House's head of analyses says. "It could cause a little turmoil in some portfolios containing other media securities, but only to a certain extent. Anyway, this would be a good move because many investors would be interested in buying Polsat's shares."

Polsat's net profit for 2005 is estimated to reach zł.220 million, while revenues should hit zł.700 million. According to the company's financial forecast, revenues may drop by zł.40 million in 2006.