Warsaw Stock Exchange IPOs After 3Q 2007: Record-High IPO Value

53 companies had their IPOs on the WSE in 1-3Q 2007, including 6 foreign companies (Warimpex – Austria, Immoeast – Austria, ACE - Spain, Orco Property Group – Luxembourg, Slivano Fashion Group – Estonia, Olympic Entertainment Group – Estonia) and 7 companies moving from CeTO (Mewa, Hawe , ZL Orze?, Rafamet, Karen Notebook, Zastal, Resbud).

So many IPOs in 2007 already make it the third best year in the history of the WSE in terms of IPO number. So far only 1997 (62 IPOs) and 1998 (57 IPOs) had more IPOs.

In the NewConnect market, an alternative trading system operated by the WSE which opened on 30 August 2007, 10 companies had their IPOs by the end of 3Q 2007 and raised nearly PLN 77 million, mainly through private placements.

Figure 1. IPOs in 1-3Q 2006 and 1-3Q 2007

Source: WSE

This year’s IPOs totalled over PLN 16.6 billion, including close to PLN 14.2 billion of new issues. This is an absolute record in the history of the WSE (IPOs in record-high 2004 totalled PLN 13.1 billion, including only PLN 1.5 billion of new shares issues). In January-September 2006, IPOs totalled PLN 1.14 billion and new issues were PLN 717 million.

The offer of the Austrian real estate developer Immoeast was the largest public offer in the history of the WSE at PLN 10.7 billion (of which Polish investors acquired ca. PLN 463 million of shares). The second largest IPO was the offer of LC Corp shares at over PLN 1 billion. The third largest IPO was the offer of the Polish real estate developer JW Construction (PLN 777 million).

Table 1. Largest IPOs in WSE History

Source: WSE

The WSE is becoming a regional giant in IPOs of companies from the large and promising sector of real estate developers, as demonstrated by many IPOs to date and plans of further companies of the sector to enter the market.

The structure of this year’s IPOs proves that large Polish private companies increasingly raise growth capital in the stock exchange. Of the top 10 IPOs of Polish private companies, 3 have taken place in 2007: LC Corp, JW Construction and Noble Bank, totalling over PLN 2.1 billion.

Table 2. Largest Private IPOs

Source: WSE

Over the past few years, the WSE has been one of Europe’s most active IPO markets with 38 IPOs in 2006 and 35 IPOs in 2005.