The offering of the Warsaw Stock Exchange (WSE) marks yet another triumph for the Citizen Shareholding Programme as confirmed by over 323,000 retail investors who subscribed for shares in the company. It is also a unique success among institutional investors, whose demand for the shares outstripped supply by over 25 to 1. The final price of the WSE shares for retail investors was set at PLN 43 per share and for institutional investors at PLN 46 per share. The total offering of the Warsaw Stock Exchange is valued at PLN 1.2 billion (€304 million/$423 million), and the WSE’s capitalisation based on the price for institutional investors is PLN 1.9 billion (€486 million/$677 million).
A historic transaction of symbolic meaning is drawing to an end. The results of the Polish economy and recent transactions on the Warsaw Stock Exchange, including some of the largest and most significant anywhere in Europe, have demonstrated the strength of the Polish capital market. Thanks to the WSE privatisation, Warsaw will further strengthen its position as the capital market centre of Central and Eastern Europe.
Over 323,000 subscriptions by retail investors for a total of approximately 30.9 million shares is a great success for the Citizen Shareholding Programme and confirmation of the maturity of this group of investors in Poland. In response to expectations, the Polish State Treasury, as the selling shareholder, decided to increase the final number of shares offered to retail investors from 25% to 30% of the shares offered in the public offering.
The huge interest in WSE shares among institutional investors, where demand exceeded supply by 25-fold, provided equally significant proof of the attractiveness of the offering and of the Polish capital market. Leading financial institutions from nearly 30 countries across five continents participated in the book-building process, including Polish pension funds (OFE), Polish investment funds (TFI) as well as international investment funds, sovereign wealth funds and endowment funds.
Aleksander Grad, the Polish Minister of the Treasury, commented: “The record-high interest from domestic and international institutional investors, as well as retail investors, in the WSE offering is further evidence of how favourably Poland and the Polish economy are perceived. On the one hand, the record high demand from institutional investors reinforces Warsaw’s position as a hub for capital markets in Central and Eastern Europe. On the other hand, over 323,000 retail investors confirm the dynamic development of the Polish capital markets and the Polish Citizen Shareholding Programme that goes with it.”
WSE CEO Ludwik Sobolewski commented: “The last few weeks have been a period of intense meetings with investors in Europe, North America and the Middle East. The huge interest in our offering encountered among retail investors and a wide range of renowned institutional investors confirms their conviction that the Polish economy and the WSE will continue to grow and that we will strengthen our position as the financial centre for Central and Eastern Europe.’
Shares in the WSE will be finally allotted to investors by 4 November. In the case of retail investors, final allocation will be made in accordance with the maximum allocation rule described in the prospectus. All retail investors who filed subscriptions for a number of shares equal to or less than the maximum allocation will receive their allocation in full. Investors who filed subscriptions for a greater number of WSE shares than the number of shares specified by applying the maximum allocation rule will be allotted the number specified by the maximum allocation. Information about the number of WSE shares constituting the maximum allocation will be announced by 5 November.
In accordance with the proposed schedule for the offering, subscriptions for WSE shares by institutional investors will be accepted through 3 November. The first listing of the WSE shares is planned for 9 November. Reimbursement of individual investors whose subscriptions were reduced will be made to the securities account from which the subscription was filed within 14 days of the allocation of the shares.