WSE Debuts with 18 pct Gain, Turnover Exceeds PLN 200 m in First 5 Minutes of Trade

chart : http://gospodarka.gazeta.pl/Gielda/0,83497,GPW.html

The Warsaw Stock Exchange debuted on its own main floor at PLN 50.75, 18 percent above its IPO price for retail investors and 10.3 percent above the IPO price for institutional investors, with turnover exceeding 200 million zlotys in first five minutes of trade. At 9:23 turnover reached 247 million zlotys while the price had edged up further to PLN 51.75.

Nearly 26.8 million shares of the Warsaw Stock Exchange began trading on the bourse today, marking Poland’s last major privatization via the stock market this year.

The flotation of the WSE IPO would be historic and would "crown 20 years of economic transformation" in Poland since the fall of communism in 1989, Treasury Minister Aleksander Grad had earlier said.

The government plans to float up to 64% of the bourse's equity but will retain a majority of the shareholder votes. WSE set the reference price on stock debut at PLN 43. The IPO is expected to raise as much as 1.1 billion zlotys.

WSE's stock debut is expected to be a success, with an issue price at PLN 43 and 323 000 retail subscribers. The shares may generate up to 23% profit, Invest Consulting analyst Wojciech Szymon Kowalski told Puls Biznesu daily on Monday. 

Less active investors may treat the shares as a long term investment, especially in light of the promised dividend, Noble Securities analyst Boguslaw Tazbirek. 

The WSE shares may be traded for PLN 48.7 at the open of the first day of listing, according to the mean of forecast by 12 institutions surveyed by Parkiet daily. 

The WSE is the biggest exchange in central Europe – recently overtaking the Vienna bourse – and has been one of Europe’s leaders in IPOs.