Treasury Ministry sets price range on PKO BP shares

This range is in line with analysts' expectations, with most specialists agreeing that the final price, to be announced on November 3, will likely be set at around zł.20 per share. The announced price range puts the value of the IPO at between zł.5.2-6.1 billion. It also makes PKO BP shares relatively cheap in comparison to other listed banks. The Price/Earnings ratio average of Bank Pekao, BPH and BZ WBK is equal to a little over 16, while PKO BP's is between 12 and 14 at the price range set. A few days ago, Bank Millennium brokerage valued PKO BP's shares at zł.22.3-24.6, while the BM BGŻ brokerage, which is offering the shares on behalf of the Ministry, valued them at between zł.16 and zł.24.8, depending on the valuation method used. Starting today, individuals can sign up for shares at brokerage houses, with the total value of bids likely to exceed the value of shares on offer several times. Analysts believe the bids could also exceed the previous IPO record - investors placed bids worth zł.13.5 billion for shares in oil giant PKN Orlen. (Gazeta Wyborcza, p. 26)