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Equity markets

WSiP stock sale overshadowed by PKO BP

Demand for shares of PKO BP, Poland's largest retail bank, won't hurt state-owned WSiP publishing house, which begun taking subscriptions for 26.6 million shares last Thursday, stockbrokers say. Polish government, which controls both corporations, decided to extend the sale of WSiP with a five-percent discount for retail investors by one business day until Monday to give them more time to buy the stock on margin. Initial Public Offering of Warsaw-based publisher is worth approximately 230 million zloty, versus six-billion zloty ($1.76 billion) privatization sale of PKO BP.

Equity markets

Ivax, five other stocks cleared for WSE listing

Polish Securities and Exchanges Commission has approved dual-listing plans of US drug-maker Ivax Corporation on Friday, bringing it a step closer to the buyout of Polfa Kutno, a local pharmaceutical company. Ivax already owns 25 percent of Polfa and said it would bit for the rest, offering the existing shareholders its own stock worth the equivalent of 340 zloty ($99.84) per each share of Polfa. Kutno-based firm has market capitalization of approximately 620 million zloty, or just over 180 million dollars.

The SEC has also cleared five other Initial Public Offerings, including Polcolorit ceramic-tile maker, insulin manufacturer Bioton SA, Eurofaktor, an independent factoring company from Silesia, Warsaw-based Praterm, which operates municipal heating systems in several Polish cities and Koelner SA, which makes building accessories.

Food industry

Wrigley to move production to Poland

Wm. Wrigley Jr. Co., the world's largest chewing-gum maker has announced plans to shut down its Eclipse breath strips plant in Phoenix, Texas, moving its operations to Poland. The country already hosts one of Wrigley's biggest production plants in Europe.

Information Technology

Prokom signs another contract with ZUS

Poland's largest IT group Prokom Software has signed an agreement with the state-owned ZUS social security administration to manage its information technology system. The contract, which runs until the end of next year, is worth 134.8 million zloty ($40 million), Prokom said yesterday.

Its shares nevertheless slipped 0.4 percent to close at 138 zloty in light trading.

Electrical supplies

ZPUE hits all-time high

The stock of switchgear manufacturer Zakład Produkcji Urządzeń Elektrycznych B.Wypychewicz (ZPUE) soared to a record high this week after the company published stronger than expected preliminary nine-month earnings. A small-cap stock that was listed on the OTC exchange until three years ago, ZPUE reported earnings of 4.26 million zloty versus last year's PLN 1 million. Sales were up 37 percent to just under 76 million zloty as local demand for its products picked up after several years of flat revenues.

Shares of ZPUE rose 2.4 percent to close at 42 zloty on Friday.

The economy

Economic growth slowed in third quarter, GUS says

Poland's third quarter GNP growth was slower than the 6.1 percent increase in the second quarter, the country's Main Office of Statistics (GUS) said on Friday. Stronger economic growth in the June quarter was driven by the impact of EU entry, GUS deputy head Halina Dmochowska said.

Unemployment rate fell slightly to 18.9 percent, with the number of job-seekers falling below the three-million mark for the first time in months.

Information Technology

SAP Polska sees higher software sales

SAP Polska software distributor is expecting sales of up to 200 million zloty this year, CEO of the local unit said on Friday. German software maker, best known for its Enterprise Resource Planning systems, reported 45 percent increase in none-month sales, Grzegorz Rogaliński said. SAP Polska wants to grow its sales three times faster than the market as a wholShares of Próchnik SA apparel-maker fell into a tailspin on news that the company plans to sell new shares at a fraction of their price on the WSE. The stock lost over a third of its value over a period of several weeks, closing at 1.22 zloty on Friday. Próchnik said it would offer new stock to debtors and shareholders at 0.5 zloty per share.