The Warsaw Stock Exchange (WSE) is a European leader amongst bourses in terms of the highest number of new companies that were admitted to stock exchange trade in Q4 2008 – shows IPO Watch Europe report drawn up by PricewaterhouseCoopers. In IPO value terms the Warsaw bourse was a runner up, just after London Stock Exchange (LSE). In the overall 2008 WSE was a runner up in the entire Europe both in IPO volume and value terms.
The Warsaw Stock Exchange was ahead of all exchanges in the region as well as other markets including NYSE-Euronext, OMX, and Deutsche Boerse. PwC data confirm the exceptional dynamics of the Polish IPO market. The WSE’s high second position by the value of IPOs means that the Warsaw Stock Exchange gives both large companies and small enterprises access to equity necessary to finance corporate growth and consolidate the potential of the Polish economy. Despite the financial crisis, the WSE managed to strengthen its position on the European stock exchange market. The Warsaw Stock Exchange is the unquestionable regional leader in Central and Eastern Europe. The WSE’s capitalisation of domestic companies, IPO number and value, and futures market are higher than on any other stock exchange of the region.
The WSE’s high position on the IPO market is a unique achievement in Europe, both in terms of the number of new listings and the value of shares taken up by investors in IPOs. In the context of the stock market downturn in 2008 and the very negative sentiment prevailing over the past months, the high number of companies which managed to raise public equity notwithstanding the adverse circumstances is best proof of strong confidence in the Polish exchange and trust in its potential. The survey of the renowned consultancy PricewaterhouseCoopers has been conducted for years based on a uniform methodology. The WSE has taken a leading position in the ranking over the past years, which proves that the Polish stock exchange is a very effective equity-raising mechanism resistant to a downtrend. The results of the survey published by PricewaterhouseCoopers should be considered in light of the fact that the second position in Europe judging by the number and the value of IPOs goes to a stock exchange in an economy ranking below the continent’s top ten.
The markets operated by the Warsaw Stock Exchange had 94 new listings in 2008, including 33 on the WSE Main List and 61 on the alternative market NewConnect. The value of this year’s offers was in excess of PLN 9.5 billion.
Four new foreign stocks were listed: Three at the Main List: Atlas Estates Ltd. (Guernsey), Belvedere (France), NWR (Czech Republic), and one on the NewConnect: Photon Energy (Czech Republic).
Over the past year, the WSE has grown to become the largest stock exchange in the CEE/SEE region. The capitalisation of the WSE is EUR 10 billion bigger than that of the Wiener Boerse.
Q4 2008
In Q4 2008 on the markets run by WSE the number of IPOs totalled 23, which exceeded 1/3 of all IPOs in Europe in that quarter. The aggregate value of IPOs totalled € 555 million, which accounted for 45 percent of the total value of all IPOs in that quarter in Europe (€ 1.2 billion). In period under study on the markets run by London Stock Exchange the number of IPOs totalled 12 with the aggregate value of € 666 million.
The Warsaw Stock Exchange outstripped such major markets as NYSE-Euronext (13 IPOs in Q4), OMX alliance (9 IPOs), or Frankfurt stock exchange (1 new company). On Vienna bourse no IPOs was recorded in Q4 2008.
Table 1. IPOs on European stock exchanges in Q4 2008|
# |
Exchange |
No of IPOs |
IPO value (in € M) |
|
1 |
WSE |
23 |
555 |
|
2 |
NYSE-Euronext |
13 |
6 |
|
3 |
LSE |
12 |
666 |
|
4 |
OMX |
9 |
- |
|
5 |
Luxembourg |
4 |
- |
|
6 |
Oslo |
2 |
11 |
|
7 |
Deutsche Boerse |
1 |
- |
|
8 |
Switzerland |
0 |
- |
|
9 |
Borsa Italiana |
0 |
- |
|
10 |
Madrid (BME) |
0 |
- |
|
11 |
Wiener Boerse |
0 |
- |
|
12 |
Ireland (ISE) |
0 |
- |
|
13 |
Athens |
0 |
- |
Year 2008 Summary
Taking into consideration the overall 2008 WSE was a runner up in Europe in the category of the highest number and value of IPOs. In 2008 on the markets run by WSE the number of IPOs totalled 94; meanwhile LSE recorded 99 IPOs and in third place came NYSE-Euronext with 65 IPOs. Last year on European stock exchanges 340 IPOs was recorded.
The value of last year’s IPOs in Europe exceeded € 15.5 billion, of which € 8.9 billion was the value of IPOs in London, while € 2.5 billion in the runner-up Warsaw.
Year 2008 – Regulated Markets
In 2008 in EU regulated markets alone WSE was a runner up in Europe, just after London Stock Exchange. On the Main Market of WSE 33 IPOs were recorded, whereas on LSE – 38. In third place came the Eurnonext alliance with 16 IPOs recorded on the Eurolist main market.
Year 2008 – Alternative Markets
The alternative market run by WSE, viz. NewConnect was highly successful, since in 2008 61 IPOs was recorded there, which equalled the number of IPOs in alternative markets run by London Stock Exchange (AIM plus PSM markets). In third place came the NYSE-Euronext alliance, with 49 IPOs recorded on its Marche Libre and Alternext markets. On alternative markets studied by PwC 222 IPOs were recorded in 2008.
