.jpg)
Initial Public Offerings (IPOs)
In June 10 new companies had their IPOs at the WSE of which 2 were foreign companies and two were transferred from MTS-CeTO, an OTC market.
1st June - Automotive Components Europe (domiciled in Luxembourg). The ACE Group is a specialist supplier supplying players from the automotive industry in Europe. The Group activities include primarily the production of braking system components that are applied in several dozen car models.
4th June - J.W. Construction Holding. The Company is the largest Polish housing developer. J.W. Construction builds multi-family houses, housing units and apartments as well as detached family houses and terraced houses. The Group also runs activities in the field of construction and assembly works also acting as general contractor implementing construction projects.
6th June - PolRest. The PolRest Group runs catering activities in 18 restaurants positioned in two segments: casual dining (9 restaurants) and premium (9 restaurants). Most restaurants is located in the cities in southern Poland.
11th June - Kredyt Inkaso. The Company is active in the financial service industry connected with liabilities trading. The core activity of the Company is the purchase of liabilities believed by the original owners as hard to recover and to seek debt collection on its own, using legal measures acting jointly with specialist legal offices.
13th June - MOJ. MOJ deals with production and distribution of equipment and tools, mainly for the purposes of mining sector including in particular underground mining industry. The Company products are also purchased by the customers from other branches of industry such as power sector, metallurgy, petrochemical industry, paper industry and cement industry.
14th June – Premium Financial Group. The core activity of the Company are financial intermediary services and auxiliary activities. The Premium Financial Group offers four basic products: Premium Factor, Premium Capital, Premium Debt Collection, Premium Assignment.
21st June - ORCO Property Group (domiciled in Luxembourg). The Company runs activities in the area of real estate development, investments and asset management in Central and Eastern Europe. ORCO, in addition to WSE listing, is also listed at the following stock exchanges: Euronext Paris, Prague, Budapest.
25th June - Rafamet. The Company is a producer of specialist machine tools for railway sector, steel industry, paper industry, power sector, aviation and armament industry. Rafamet also produces CNC large-size lathes, milling machines and process lines. Most of its output is sold on foreign markets.
27th June - Karen Notebook. The Company is a retailer selling portable computers. At present, its sales network includes 102 stores (26 own and 76 franchised ones) where the Company offered a wide range of notebooks made by leading producers.
29th June - LC Corp. The core activities of the Company are developing activities involving the purchase of real estate, building housing units (office, commercial or service space) and then selling or leasing out units located in developed buildings. The total value of Company shares offered for sale amounted to PLN 1.06 billion and this is the largest IPO of a private company in the history of WSE.
In the first half of 2007, 32 companies had their IPOs at WSE including 4 foreign companies and 5 from MTS-CeTO over-the-counter market. This year the value of offers in the primary market amounted to approximately PLN 15.2 billion, of which the value of new issues amounted to PLN 13.3 billion. This is the record high value in the history of WSE (the total IPO value in the overall record year 2004 amounted to PLN 13.1 billion, of which merely PLN 1.5 billion were new share issues).
At WSE, equity has been equally successfully raised by SMEs and by large corporations. The offering of Austrian developer Immoeast has been the largest ever IPO at WSE worth PLN 10.7 billion. The second top offering in terms of value this year was the sales of shares in the Polish developer LC Corp (above PLN 1 billion).
In the 1st half of this year, the companies already listed were very active at the stock exchange – as a result of secondary issues of shares the WSE listed companies raised almost PLN 2.1 billion, whereas in 1st half of 2006 they managed to raise approx. PLN 1 billion.
WSE Members
On 4th June, the WSE Management Board admitted to the exchange operations a new member, viz. X-Trade Brokers Dom Maklerski S.A. brokerage house domiciled in Warsaw. X-Trade Brokers is active on the Forex market. Since March 2007 XTB has also operated through its branch office in the Czech Republic. In 2007 the Company plans to open branch offices in Spain and Italy.
On 8th June, WSE Management Board admitted Cashline Securities Ltd to exchange operations granting it the WSE Member status. Cashline Securities is one of leading brokers operating both in spot and futures markets at the Budapest Stock Exchange. The Warsaw Stock Exchange is the first financial market where Cashline Securities launched its activities as a remote WSE Member.
On 18th June this year a Swedish credit institution Nordnet Bank AB filed an application for WSE membership. At the exchange, the applicant intends to trade in financial instruments acting on its own and on behalf of its customers.
Nordnet Bank AB is one of major brokers active on the Scandinavian market. The broker is a member of the following exchanges: OMX, Deutsche Borse (XETRA), Nordic Growth Market. Nordnet.
At the end of June, WSE Members included 39 entities of which 13 companies were remote WSE Members. These included:- Concorde Securities Ltd. - Hungary,
- GLITNIR AB (Fischer Partners Fondkommission AB) – Sweden,
- Wood & Company Financial Services AS – the Czech Republic,
- Raiffeisen Centrobank AG (RCB) – Austria,
- Credit Suisse Securities (Europe) Ltd. – Great Britain,
- Kepler Equities S.A. – France,
- JP Morgan Securities Ltd. – Great Britain,
- Bayerische Hypo- und Vereinsbank AG – Germany,
- Bank Austria Creditanstalt AG – Austria,
- AS SUPREMA SECURITIES – Estonia,
- Societe Generale S.A - France,
- BNP PARIBAS ARBITRAGE SNC – France,
- Cashline Securities Ltd – Hungary.
The turnover of remote WSE Members has systematically been growing. In 1st half of 2006 the value of traded volume generated by this group amounted to PLN 2.3 billion, whereas after 6 months of this year reached almost PLN 9 billion.
NewConnect
In June, organisational efforts were taken to launch the NewConnect market. NewConnect – is a new market, organised and run by the Warsaw Stock Exchange, financing the development of young and dynamic companies with high growth potential. This is also a new proposal of WSE for investors accepting higher risk level in exchange for potentially high return on investment. The shares of first issuers will be traded on 30th August 2007.
On 20th June, the Alternative Investment Market Rules for NewConnect market came into force. The Rules will be available on the Web site, at the following address: http://www.newconnect.eu
On 27th June, the WSE Management Board took a resolution admitting the first group of WSE Authorized Advisers to the NewConnect market. The role of an Authorised Adviser will be to prepare the issuer for IPO on NewConnect and to support the issuer by offering advisory services in the initial period of listing.
Since company IPO, for a period of at least one year, the Adviser will support the issuer in terms of fulfilment of reporting duties and will advice the issuer how to operate on NewConnect. The co-operation with an Authorised Adviser will increase chances of obtaining advantageous valuation by the company.
The list of Authorised Advisers includes:- Forystek & Partnerzy Advocates and Legal Advisers,
- TAG Sp. z o.o.,
- Prof. Marek Wierzbowski Legal Advisers,
- Ole? & Rodzynkiewicz”,
- MOORE STEPHENS Trzem?alski, Krynicki & Partners,
- Auxilium S. A. -- Expert Auditing Bureau,
- M.Furtek & Partners Legal Advisors,
- Investin Sp. z o.o.
- WDM Securities SA
- Central Eastern Europe Capital Sp. z o.o.
- EGEA GROUP Sp. z o.o.
- Tomasik, Chabasiewicz & Partners
- Capital One Advisers Sp. z o.o.
- BISE Bank SA
- Ruci?ski & Partners Auditors and Investment Advisers Sp. z o.o.
- Dom Inwestycyjny BRE BANK S.A.
- Dom Maklerski BZ WBK S.A.
- Dom Maklerski Penetrator S.A.
- Millennium Dom Maklerski S.A.
- Bank Inicjatyw Spo?eczno - Ekonomicznych S.A.
- Erste Securities Polska S.A.
Conferences, Meetings
On 12th June, an official visit to the Warsaw Stock Exchange was conducted by Mr Andrus Ansip, Prime Minister of Estonia. The visit agenda included a personal meeting between Mr Prime Minister of Estonia and Mr Ludwik Sobolewski, President of WSE Management Board. Mr Prime Minister of Estonia closed the trading session by ringing the bell and made an entry into the WSE Visitors’ Book.
On 13th June, at a conference centre in Ukrainian Dniepropietrovsk, a conference was held under the title ”Opportunities to Raise Capital for Companies from the Dniepropietrovsk Region – Practical Aspects” that was attended by WSE representatives following an invitation of conference organiser Millennium Capital brokerage house, a WSE IPO Partner. The conference was organised under the auspices of Regional Public Administration Office of Dniepropietrovsk. In addition to WSE, the conference partners included Dniepropietrovsk Chamber of Commerce and Industry, Steinberg Capital Fund, Astarta Kiev company, Baker Tilly Ukrainian audit firm and Fortis international financial group.
On 14th June, a conference entitled ”Availability of Financial Data in the Polish Capital Market” was held on the WSE Trading Floor. The conference concerned the presentation of current status regarding access of capital market players to various information including, in particular, financial information. The major topic of the conference was discussion of current situation in the field of drawing up and publication of financial statements based on IFRS standards and standardisation of information in financial markets. Additionally, the issue of expectations was raised.
On 20th June, in Lvov (Ukraine) a seminar entitled ”WSE Listing – Prospects for Ukrainian Businesses” was organised by the WSE for representatives of businesses from the Western Ukraine region. The presenters from Poland and Ukraine gave practical hints on formalities which an Ukrainian company applying for WSE membership has to clear and what benefits are connected with WSE listing. During the seminar, presentations were delivered by representatives of the Polish brokerage house IDM SA, Ukrainian Millennium Capital, Prof. Marek Wierzbowski – Legal Advisers, BDO Numerica audit firm from Poland, BDO Balance Audit from Ukraine and Baker Tilly. The press conference, following the seminar, was attended by Beata Jarosz, a member of WSE Management Board.
On 20th June, on the Warsaw Stock Exchange Trading Floor, the eighth edition of IPO Day – Novice Day project was held, organised by the Association of Individual Investors acting jointly with the Warsaw Stock Exchange. The major underlying assumption of IPO Day is to create a platform of exchange for investors, analysts and journalists allowing them to meet in person with representatives of company management boards, planning an Initial Public Offering and listing at the WSE. 7 companies planning shortly their IPOs at WSE participated in June’s edition of the project.
On 22nd June, a conference entitled ”Regulatory Reform In Practice – Selected Aspects of Capital Market” was held at the Warsaw Stock Exchange. Its objective was to draw attention to the necessity of reviewing legislation regulating sectoral markets including, in particular, the capital market and presentation of various opinions on Regulatory Reform under the slogan „Entrepreneurs Have Rights”. The conference dealt with practical aspects of applying “Better Regulation” principles to the capital market, the issues of market regulations in Poland and possibilities for using soft law in the capital market. During the conference, the most frequent developments on the capital market were discussed (M&A) as well as the possibilities of administratively controlling the correctness of M&A procedures.
22nd June – a Corporate Governance Conference was held at the WSE. The conference was organised by the Gazeta Prawna daily, and patronage over the conference was exercised by the Warsaw Stock Exchange. During the conference Ludwik Sobolewski, the President of WSE Management Board described new corporate governance principles at the Warsaw Stock Exchange. President Ludwik Sobolewski thanked everybody who contributed during the public consultations of the document, Good Practice of WSE Listed Companies”
Other Developments
On 4th June, the Warsaw Stock Exchange enhanced the capacity of the WARSET quotation system through replacement of central server and a part of system infrastructure. This complicated operation was necessitated both by safety reasons and appropriate level of technical infrastructure for market players and by huge increase in the number of orders placed per session.
The outcome capacity of the upgraded system achieved and confirmed during tests is 4.5 times higher. At present, the system is able to handle almost 180 orders per second.
Since 15th June, the WSE has calculated and made public a new WIG sectoral subindex – WIG Developers. At the end of June, the subindex comprised 12 companies.
On 19th June, the Ukrainian company XXI Century Investments announced that, in short-term, it would have an IPO at the Warsaw Stock Exchange. XXI Century Investments is one of the largest Ukrainian players active in real estate market. The Company executed development projects in such market segments as office buildings, shopping malls and housing properties. XXI Century Investments will be the second (following Astarta) Ukrainian business listed at the WSE.
On 29th June, the Ordinary General Meeting of WSE Shareholders was held. The General Meeting approved, among others, the WSE Management Board Report on Company Activities and Financial Statement for 2006. Additionally, it acknowledged the fulfilment of duties by all members of WSE Supervisory and Management Boards who performed their functions in 2006.
Following a request of the representative of the Ministry of State Treasury, the proceedings were interrupted until 13th July this year.
June 2007 – Statistical Highlights
Percentage changes in indices |
From the beginning of the year |
WIG20 |
3.0%14.4% |
mWIG40 |
1.2%52.3% |
sWIG80 |
6.0%68.1% |
WIG |
4.0%31.1% |
TECHWIG |
-0.4%9.9% |
WIG-PL |
4.0%31.4% |
Out of all listed companies, 155 recorded positive growth rates.
Highest Share Price Growth Rates in June |
|
|
|
Company |
Price as of 31.05.07 |
Price as of 29.06.07 |
Change % |
PONARFEH |
76.70 |
122.00 |
59.1 |
POLNA |
88.90 |
140.00 |
57.5 |
SANWIL |
1.64 |
2.51 |
53.0 |
The exchange traded volume in the spot market amounted to PLN 42 910 M in value terms and was by 6% higher than in May. In the futures market, the traded volume amounted to PLN 55 128 M in value terms and was by 29% higher than in the previous month.
Trade in instruments (PLN M) |
Stock**41 702 |
Bonds**396 |
MiniWIG201.0 |
Futures |
Value*55 083 |
Volume (pcs.)813 088 |
Options |
Value*44.1 |
Volume (pcs.)37 803 |
*at the value of contracts/options
**excluding block trading
More statistics in Monthly Newsletter.
