News Parkiet

Equity markets

Poland to tax rights to shares issued this year

Investors buying rights to shares issued this year may have to pay 19 percent capital gains tax, Polish Finance Ministry said yesterday. The decision will affect investors who participated in a flurry of IPOs at the year's end.

'Rights to shares and actual shares are treated as two separate types of securities. Hence, if the stock is registered on investor's account in 2004, he or she will have to pay capital gains tax', says Anna Puzyna-Sobocińska from Ministry of Finance press office.

Warsaw Stock Exchange created rights to shares several years ago to bridge the gap between public offering and the registration of new equity increase by Polish courts, which often took several weeks or more. Rights would begin trading early and would be converted into 'real' stock once the company completed court registration procedures. As of this Thursday, three publicly traded firms had outstanding rights to shares, including, ZM Duda meat-processor, Redan clothing retailer and Ster-Projekt IT services firm. Two others, ATM Grupa TV producer and Śnieżka paint factory will begin trading before the expiry of capital gains tax break.

Equity markets

ATM sets issuing price at 36 zloty

ATM Grupa TV producer said its upcoming IPO will be priced at 36 zloty per share. The firm has set its initial IPO price range at 30 to 36 zloty.

Wroclaw-based ATM will try to raise 46 million zloty ($11.5 million) in an IPO scheduled just before Christmas.

Institutional investors who participated in the book-building process signed up for ten times the number of shares on offer, prompting the company to shift some of the stock initially allocated do individual investors.

Michał Kowalczewski from Dom Maklerski Millennium, which underwrites the IPO says most of the demand comes from Polish asset management companies, mutual and pension funds.

ATM supplies entertainment-focused TV programming for Poland's largest private broadcaster, Telewizja Polsat.

Banking and finances

BRE vies for a spot among Poland's

four largest banks

Commerzbank subsidiary BRE Bank wants to move up to fourth spot in the ranking of top Polish banks in terms of assets, CEO Wojciech Kostrzewa said on Thursday. Poland's only investment bank hopes to overtake Citibank-controlled Bank Handlowy by buying out its partner in Rheinhyp-BRE mortgage bank. Kostrzewa's bank will also try to increase lending to corporate customers.

Wojciech Kostrzewa has reiterated BRE's plans to issue 400 million zloty worth of new shares to finance the purchase of 50% stake in Rheinhyp-BRE from Eurohypo sometime early next year.

Food processing

PZZ Bolesławiec to build Canola oil plant

PZZ Bolesławiec grain processor has announced plans to build a 23-million euro Canola oil plant together with its German partners. The company, which is listed on CeTO over-the-counter market says it will set up a joint venture with German suppliers Ferrostaal and WIG-LER. Bolesławiec itself will provide site for the plant, plus rapeseed processing line. The plant will have a total production capacity of up to 40 million liters of Canola oil, to be used as fuel additive.