Bloomberg News

Poland Sees Coal Producer JSW’s Share Sale at $1.94 Billion

June 09, 2011

(Updates with the value of the IPO in the first paragraph.)

June 9 (Bloomberg) -- Poland expects to raise 5.25 billion zloty ($1.94 billion) from the initial public offering of coal producer Jastrzebska Spolka Weglowa SA, according to Bloomberg calculations based on offering documents published today.

Individual investors in Poland’s biggest IPO this year will be allowed to bid for a maximum of 75 shares in the European Union’s largest coking-coal producer, known as JSW, according to its prospectus. Sale procedures elsewhere on the company’s website said individuals may buy “about 10,000 zloty” of shares each, which implies a price of about 133 zloty for each of the 39.5 million shares being offered.

The Treasury Ministry is seeking to raise 15 billion zloty from asset sales this year to help finance the budget deficit and curb debt. Poland sold 12 percent of Bank Gospodarki Zywnosciowej SA last month and is offering 10 percent of its biggest insurer PZU SA today.

“We’re starting one of the biggest IPOs in Europe this year and we’ve already received very positive feedback from investors,” Minister Aleksander Grad said at a news conference in Warsaw today. He declined to comment on the calculations by Bloomberg News.

JSW’s maximum price will be announced on June 13, with final pricing on June 28, according to the prospectus. The government and JSW pledged not to sell shares for 360 days after the IPO.

Fastest-Growing Market

Poland, whose sole stock exchange is central Europe’s fastest-growing equity market, has had 84 IPOs so far this year, attracting more companies than all of western Europe and ranking second after China among emerging markets, according to data compiled by Bloomberg.

Brokerages helping manage the sale value JSW at 13 billion zloty or more, a person who had seen research from four of the nine underwriters said on May 31.

JSW will be the biggest coal producer listed in Warsaw when its stock starts trading on July 6, with a market value set to exceed New World Resources NV of the Czech Republic, Poland’s Lubelski Wegiel Bogdanka SA, and Ukraine’s Sadovaya Group SA.

Goldman Sachs Group Inc., JPMorgan Chase & Co., Citigroup Inc. and UniCredit SpA are joint global coordinators and joint bookrunners for the sale. PKO Bank Polski SA, Ipopema Securities SA, Societe Generale SA, BRE Bank SA and Wood & Co. also help manage the IPO.

--With assistance from Marta Waldoch in Warsaw. Editors: Nathaniel Espino, James M. Gomez

To contact the reporters on this story: Maciej Martewicz in Warsaw at mmartewicz@bloomberg.net; Pawel Kozlowski in Warsaw pkozlowski@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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