News Parkiet

Equity markets

Polish IPO market cooling off

Cinema City movie theater operator and Eurocash SA grocery wholesaler called off their Initial Public Offerings on the Warsaw bourse earlier this week in an overheated IPO market citing lower than expected demand for shares from pension and mutual fund. Another Eurofaktor financial services group was forced to scale down its IPO plans but managed to raise PLN 36 million in an offering that closed last week. Investment managers commenting on the failed IPOs say they were too expensive, pointing out increasing competition as dozens of other companies are planning to come out with their own public issues. Institutional investors are also getting more cautions after weak performance of some of the higher-priced offerings earlier this year, Andrzej Kosiński from AIG Investment Management said

Information Technology

Prokom redeems convertible bonds

Prokom Software bought back 165 million zloty worth of convertible bonds, the company reported on Wednesday. Poland's biggest information technology group issued 200 million zloty convertibles three years ago to pay for the acquisition of Softbank SA, a former rival. Shares of Prokom have been trading below conversion price of 149.25 zloty over the last few weeks after the company reported nine-month loss of PLN 11 million.

Pharmaceuticals

Ivax has 98 pct. of Polfa Kutno

US drug-maker Ivax Corporation has accumulated a 98 percent stake in Polish generic drug manufacturer Polfa Kutno, official from an investment firm that managed the deal told PARKIET yesterday. Miami-based company bought 65 percent of Polfa in a public auction that closed on Tuesday. Ivax is issuing over eight million new shares worth approximately 134 million dollars to pay for Polfa. Shares of US company will start trading on the Warsaw Stock Exchange on December 10.

Information Technology

Comp announces IPO details

Encryption systems maker Comp SA says it is planning to raise up to 45 million zloty ($14.3 million) in an IPO scheduled for December 17. Warsaw-based firm reported six-month sales of just 23 million zloty ($7.4 million), with 15 percent profit margins.IPO proceeds are to be used for new IT security projects, as well as small acquisitions and long-term contracts with existing clients. The sale is managed by CA IB Securities.

Conglomerates

Bartimpex sees strong earnings in 2004

Bartimpex trading group expects 45 million zloty in profits this year, Chief Financial Officer told PARKIET recently. Privately held company, which is controlled by top Polish businessman Aleksander Gudzowaty, may report sales of some 400 million zloty, Jan Antosik said.