Polish POGC IPO to go ahead in first half of September
The Polish treasury has now decided to go ahead with the IPO of the Polish Oil and Gas Company (POGC). Registration for the issue is to take place between 1st and 15th September and the price range is to be determined by 31st August “on the recommendations of the IPO coordinator HSBC bank plc, and those of the offering institution Bankowy Dom Maklerski PKO B.P. S.A. Warsaw.
The issue will represent the largest Polish share issue this year involving 900 million series B shares which will account for 15% of the company’s basic capital after the issue. 13% of POGC’s shares after the issue will go to employees, according to the Polish treasury.
The treasury wants to raise PLN 1.5 billion (EUR 369 million) through the issue, which would value each share at PLN 1.66. However estimates of the company’s value vary between PLN 13.5 billion and PLN 17.6 billion, which could put the individual share price as high as PLN 3.
POGC wants the money to finance an increase in domestic gas and oil production which is cheaper than imported gas and oil. The planned increase in gas production would take it from 4.3 Gm3 in 2004 to 5.5 Gm3 in 2008. A lot of interest is expected in the issue due to POGC’s dominance of the growing Polish gas market and current high oil and gas prices. The introduction of market liberalization in 2007 will of course affect POGC’s dominant position, but that is likely to take some time.
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