Shares in railway freight transportation company PKP Cargo closed 19.34 percent over their issue price on October 31, after two days of trading on the Warsaw Stock Exchange.
PKP Cargo’s initial public offering was the largest on the WSE this year, amounting to zł.1.42 billion. Railway group PKP sold 20.93 million shares in the cargo firm at zł.68 per share.
The company's stock went up by nearly 20 percent
Courtesy of PKP Cargo
On the day of the debut, the European Bank for Reconstruction and Development said that it had bought a 5.27 percent stake in PKP Cargo in the IPO, making the institution become its second-largest shareholder.
Next in line?
Both PKP Cargo’s parent company, state-owned rail carrier PKP, and the government were jubilant over the shares’ performance. Now, IPOs for other PKP subsidiaries are already being considered. Passenger railway firm PKP Intercity could also be privatized through the Warsaw Stock Exchange, Transport Minister Sławomir Nowak said.
“I hope that within five years [PKP] Intercity will follow the path to the WSE set by PKP Cargo,” Mr Nowak said.
Poland’s State Treasury directly owns 65.7 percent in PKP Intercity, while the remaining stake is held by PKP.
“We need to make PKP Intercity profitable before we list its shares,” said PKP CEO Jakub Karnowski, adding that he wants to privatize energy supplier PKP Energetyka and telecommunications firm TK Telekom in 2014.
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