News Parkiet

Banking

Banks making extra profits from

building societies

Three major Polish banks, Pekao, BPH and ING Bank Śląski have accumulated millions in hidden profits at their building societies, a recent survey shows. Modeled after Germany?s bausparkassen, building societies attracted tens of thousands of people lured by promises of cheap loans if they kept their money there for at least three years in low-margin accounts. However, less than a third of all clients actually qualifies for loans and banks are able to invest extra money in higher-yield government bonds.

Building materials

Opoczno slides on IPO

Shares of Opoczno ceramic tile maker fell from their IPO price of 55 zloty on their first day of trading on Friday, declining as much as 3.3 percent in intraday trading only to close flat. ?It?s better to start lower and then keep going up?, chief executive Sławomir Frąckowiak said minutes after the opening bell on the WSE, when the stock was sliding lower with each trade. He said Opoczno plans to double its EBITDA earnings from 2003 figure of 130 million zloty in three to four years.

Polish investors failed to warm up to Opoczno, wary of ambitious earnings target despite 1Q loss, generous stock option program for the management, stock overhang and a pre-IPO payment of a huge dividend, partly financed with bank loans. One of Opoczno?s two main shareholders, private equity fund Enterprise Investors pulled its 48.4 percent stake from the IPO because it said the price was too low. Shares held by EI are now subject to a six-month lock-up period. Enterprise partner Ryszard Wojtkowski says his fund may try to sell its stake once Opoczno meets one of its main targets. The company said earlier it plans to buy a ceramic tile company in Russia, possibly in early 2006.

Publishing

Baring in talks over Poligrafia

Private equity fund Baring Corilius Private Equity says it has narrowed the number of candidates to buy its controlling stake in printing plant Poligrafia SA to just two international printing firms. BCPE, which owns 56.16 percent of Poligrafia says the deal with one of the two suitors may be finalized in late July or early August. Poligrafia, which owns two printing plants in south-central Poland is a mid-sized company with more than 200 million zloty in annual sales. Last year?s earnings totaled 9.9 million zloty. This year Poligrafia expects profits of 11.4 million zloty, giving the stock forward price-to-earnings ratio of 13 based on Friday?s closing price of 28 zloty a share.

Real estate

GTC to build 650 apartments in Bucharest

Property developer Globe Trade Centre says it will start two new residential projects in the Romanian capital of Bucharest. Warsaw-based company, best known as the owner of Galeria Mokotów shopping mall and the adjacent Mokotów Business Park business district, plans to build Green Dream Residence and Jasmine Park, two apartment complexes with over 650 units. The two projects will cost an estimated 75 million euros and will be financed largely with bank loans and deposits received from future owners.

Information Technology

QAD sales picking up

Polish unit of QAD Enterprise Resource Management software maker reported a 25 percent increase in sales last year. The company, called QAD Polska, posted sales of 10 million US dollars. QAD says it expects this year?s sales to be as strong as last year?s figures.

Auto parts

Variant not worried about IPO successClamping rings and car chemicals distributor Variant SA isn?t worried about the success of a tiny IPO planned later this month, company executives told PARKIET this week. Kraków-based Variant has actually cut its IPO schedule, compressing the time it will accept orders for new shares to just two days, chief executive Leszek Kołodziej said. The company plans to raise about 13 million zloty, or less than 4 million US dollars to strengthen retail sales channels. Mr. Kołodziej, who owns half percent of Variant voting shares notes that Poles have bought about one million used cars imported from Western Europe last year and many of them are now looking for spare parts and other Variant products.