The Treasury plans to launch the initial public offering of its entire 50 percent stake in ZE PAK, the fifth biggest electricity producer in Poland, reports Parkiet. The flotation, which is estimated to be worth some zł.800 million will be one of the Warsaw Stock Exchanges biggest listings this year.

According to Paweł Puchalski, an analyst at bank Dom Maklerski BZ WBK, the IPO could be successful provided that the set price is appropriate to the value of the company, its planned investments and development prospects.

“The group has a certain competitive advantage in the low cost of electricity production. Some of the major risks include high expenditures associated with the construction of new power units, and high costs of CO2 certificates. The company hasn’t published its prospectus yet so it’s hard to provide a detailed analysis,” he said.

Last year, the ZE PAK group had revenues of zł.2.69 billion, while its earnings before interest, tax and depreciation came in at zł.0.77 billion.

Poland A.M.