News Parkiet

Equity markets

Investors lining up for new ATM stock

Brokers selling this year's last IPO, ATM Grupa TV producer, say demand for the stock will likely far exceed the number of shares offered. Wroclaw-based ATM is seeking some 46 million zloty, selling 1.5 million shares priced at 36 zloty each. Institutional investors who participated in the book-building process have already signed up for ten times the number of shares available, prompting the company to shift some of the stock initially allocated to retail investors.

'A lot of people are interested. We expect demand similar to recent Redan and Śnieżka IPOs. Our clients are calling and asking for details. As usual, we'll have people lining up on the very last day', say brokers at DM BZ WBK, one of two brokerage houses selling ATM stock.

Equity markets

Redan and Ster-Projekt speed up efforts to list its stock on WSE

Redan clothing retailer and Ster-Projekt IT services firm are trying to beat January 1st tax deadline by floating their stock on the Warsaw bourse. Redan, a Łódź-based company, which raised 52 million zloty ($13 million) in an IPO several weeks ago has asked KDPW clearing house to convert its rights to shares, now trading on the WSE. Also on Friday, Ster-Projekt has announced its 5.6 million shares from last month's equity issue will be converted into 'real' stock on December 31.

Polish Finance Ministry said on Thursday, retail investors whose stock is converted after the New Year, would lose their capital gains tax exemption. Starting January 1st, Poland will start levying a 19 percent tax on stock market gains.

Public finances

Poland facing budget shortfall by May 2004, Finance Ministry says

New VAT tax laws after Poland's entry into the EU will lead to a temporary shortfall of tax income by May of next year, Finance Ministry said on Friday. Polish firms importing goods from the EU will get several extra weeks to pay their VAT taxes, reducing tax income by an estimated two billion zloty.

Wood products

Barlinek preps for 2004 IPO

Top Polish wood panel producer Barlinek S.A. has postponed plans for an IPO on the Warsaw bourse until early 2005 to give the company more time to improve its earnings. The group initially said it would list its shares in mid-2004.

Privately held Barlinek, now controlled by Polish businessman Michał Sołowow says it expects to double its profits in 2004 thanks to 33.5 million zloty investment in new production lines this year and next.

Founded in 1999 using assets of former state-owned BPPD group, Barlinek says this year's sales will reach 16 million zloty. Export sales generate over half of its 160 million zloty annual revenue. The firm wants to increase share of export sales to 80 percent of the total by 2005.

Currency market

Poland still hasn't sold EBI funds

Polish government hasn't started selling funds from 500 million euro loan received from the European Investment Bank on the local currency market, sources told PARKIET on Friday. Finance Ministry said earlier, some 260 million euro would be sold on the open market, either by an unnamed commercial bank or by state-owned Bank Gospodarstwa Krajowego.

Textiles

Lentex reiterates forecast,

eyes possible acquisitions

Lentex S.A. floor covering maker has received an informal permission of key shareholders to look around for possible acquisitions. The firm, formerly controlled by two NFI National Investment Funds, has accumulated war chest of some 20 million zloty ($5 million) in cash to finance takeovers of smaller competitors.

Separately, Lentex CEO Tomasz Towpik said the company is on track to post net earnings of 5.7 million zloty this year. Sales are set to rise to 167 million zloty.