Railway freight transportation firm PKP Cargo’s IPO could be worth as much as zł.1.6 billion when it debuts on the Warsaw Stock Exchange on October 31. Last week, the firm published its issue prospectus and launched the offering. State-owned railway group PKP is selling 21,669,007 shares (50 percent minus one share) in PKP Cargo, at a maximum price of zł.74 apiece. If the shares are sold at that price, it would make the debut the largest on the WSE so far this year.
Freight operator PKP Cargo's IPO is scheduled to take place on October 31
Courtesy of PKP Cargo
Book-building for institutional investors started on October 8 and will be completed on October 22. Subscriptions for institutional investors are scheduled for October 9-21. The final share price will be announced on October 22.
According to the company’s issue prospectus, PKP Cargo employees will receive 10 percent of the shares offered and individual investors will be allowed to buy between 15 and 20 percent. The remainder will be sold to institutional buyers. Already, the European Bank for Reconstruction and Development has said it will buy a stake of between 5 and 7.5 percent in PKP Cargo (amounting to between 10 and 15 percent of the shares on offer).
The freight operator wants to use the funds raised in the IPO to repay some of the debts racked up by its parent company. The firm also said that it plans to pay 35-50 percent of future profits in dividends.
The company’s CEO Łukasz Boroń has said that PKP Cargo is looking for foreign acquisitions as well. Besides Poland, the freight operator is currently present in the Czech Republic, Hungary, Slovakia, Austria, Germany and Belgium.
PKP Cargo is the largest rail freight operator in Poland, with a 60.3 percent market share in terms of freight turnover, and the second-largest in the EU, with an 8.5 percent market share. In H1, the company saw its net profit drop to zł.76.8 million from zł.136.6 million a year earlier. The IPO is subject to regulatory approval.
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