News Parkiet

Equity markets

Three dual listings expected 'within months', WSE says

At least two or three international firms could list their shares on the Warsaw Stock Exchange within months, WSE president Wiesław Rozłucki told PARKIET recently. Poland's main clearing house, the KDPW, is expected to sign partnership agreements with its counterparts in London, Frankfurt and Budapest soon, paving the way for dual listing, senior KDPW official Aleksander Chłopecki said. KDPW already has similar arrangements with bourses in Vienna and Luxembourg.

'I can't name any names, but in several cases these listing procedures are already fairly advanced', SEC's Jarosław Ostrowski, the head of Department of Public Companies and Finances told PARKIET.

So far, the only foreign stock listed on the WSE is Bank Austria, which begun trading in Warsaw last October. Its shares are now part of WIG20 blue-chip index.

Public finances

Gronicki keeps mum about budget

Polish Finance Minister didn't say much about next year's budget at a meeting with parliamentary Committee on Public Finances yesterday because of the journalists attending the event. 'I wouldn't want to get into details right now', Gronicki said in response to most questions about government inflation, interest rate and currency forecasts.

Venture capital

MCI to sell convertible bonds

MCI Management, a high risk venture capital fund investing in technology and Internet start-ups, says it will go back to the public to raise more money for acquisitions. The fund, which is managed by its founder, Polish businessman Tomasz Czechowicz, plans to sell 30 million zloty worth of five-year convertible bonds that will also be listed on the WSE. The strike price, at 6 zloty, is more than double yesterday's closing price for MCI stock.

MCI now has just over 41 million zloty in assets, including shareholders equity of PLN 16.5 million.

Sale proceeds are to be used to buy Wirtualna Polska, Poland's second largest Internet directory. Earlier this year MCI has made a 20-million zloty bid for Wirtualna, which is operating under bankruptcy protection. The fund is also trying to bring back to life JTT computer, a Wrocław-based PC manufacturer that went under before local court rejected tax claims by Urząd Skarbowy against the company.

Sale of MCI convertibles starts on September 14.

Telecommunications

BDM PKO BP sets target price for ATM

Analyst Michał Janik of BDM PKO BP estimates that ATM SA, a small data carrier that is planning an IPO next month are worth 24.8 zloty. BKO BP was hired to manage ATM's Initial Public Offering. By law, it cannot issue a rating on the stock.

In a research note published on August the analyst describes ATM's key asset, an advanced fiber optics network connecting Warsaw's business districts and office parks.

ATM has set its preliminary pricing range at 18 to 30 zloty. It wants to raise approximately 9 million zloty selling new shares. Existing shareholders, including EBRD's Pre-IPO fund, plan to sell several hundred thousand shares.

Banking

Bankers slam parliament plans to curb interest rates

Polish bankers slammed a proposal by two major parties to restrict interest rates on personal loans and said it would cut off high-risk borrowers from regular bank loans. Ruling Social Democratic Left Alliance and one of two main right-wing opposition parties, Lech Kaczynski's Law and Order, want to tie maximum commercial interest rates to statutory interest rates, now at 12,25 percent in response to complaints about 'usury' by some personal finance companies. The new law would only make loans more expensive by raising collateral requirements and interest rates on mortgage loans, Mariusz Kapiński, chief executive of GE Capital Bank says.

Separately, Pengab banking industry sentiment indicator rose to 32.2 points in August, the highest level in fo

Law

Poland to fight nepotism in legal industry

The parliament is working on a new law that would liberalize access to legal industry, reducing the influence of professional associations that often try to restrict new applicants to family members of existing lawyers. Starting next year, lawyer exams would be run by the Justice Ministry, instead of industry associations.

Last year just 1100 out of 12.000 law school graduates were accepted for internships at Polish law firms, a prerequisite for future attorneys. About half of those were either relatives or immediate family members of practicing lawyers.