Raiffeisen suspends IPO due to low interest

Raiffeisen Bank Polska has suspended its IPO, after failing to find enough investors for a planned IPO, the company announced. It planned to sell 15 percent stake in the company in order to fulfill its commitment to the Financial Supervision Authority (KNF), which demanded the bank to be listed after it acquired Polbank. Potential investors were not interested in the offer at the price set in the IPO prospectus at PLN 25.5-28, which would value the offer at PLN 860-950 million. According to Reuters, a small group investors wanted to buy some shares at a 40 percent discount, and the bank could only cut the price by 10 percent. The reason for small interest was the bank's low profitability and portfolio of toxic Swiss franc-denominated mortgages. The offer was valid only for institutional investors. No new dates for the IPO have been announced. According to KNF obligations, the floating should take place before the end of July.