Public likely to get less then they asked for in PKO IPO

DM BZ WBK analysts expect a 97% reduction, while those from DB Securities claim the figure could even reach 99%. Analysts of DM BOŚ brokerage point to the sizeable reductions in subscriptions for much less touted IPO of textbook publisher WSiP - 91% in the first tranche and 95% in the second. "I expect large oversubscription in the individual investors tranche [of PKO BP shares], but also in the institutional tranche. There are positive signals from abroad, where the book-building process is underway," said Grzegorz Zawada, an analyst with Erste Securities. Knowing that bids will be reduced very significantly, investors are taking huge loans to sign up for more shares than they can afford. "Banks also appear to be confident that these loans will be returned in a few days [when the allocated shares are reduced] as they are granting them boldly," points out Andrzej Powierża from DI BRE Bank. (Puls Biznesu, p. 8) T.J.