Bloomberg News

Poland Said to Price $2.1 Billion JSW IPO Above Mid-Range

June 27, 2011

(Updates with government sales in third paragraph.)

June 27 (Bloomberg) -- Poland may price the initial public offering of Jastrzebska Spolka Weglowa SA, the European Union’s largest coking coal producer, higher than the middle point of its range, said two people familiar with the matter.

The country, which is selling 33 percent of the company and is aiming to earn as much as 5.77 billion zloty ($2.1 billion) from the deal, received orders for all stock on sale at 135 zloty apiece, said the people, who declined to be named because the information is private. JSW shares have been on offer at 114 zloty to 146 zloty.

The transaction is part of a government plan to raise 15 billion zloty from asset sales in 2011 to help finance the budget deficit and curb public debt. The country has earned 6.2 billion zloty from stakes in power utility Tauron Polska Energia SA, Bank Gospodarki Zywnosciowej SA and insurer PZU SA.

Maciej Wewior, a spokesman for the Treasury Ministry, declined to comment on JSW’s pricing when contacted by phone today. The government will finish collecting bids tomorrow, in what is set to be Poland’s largest IPO this year, according to the company’s sale prospectus.

The Warsaw Stock Exchange is central Europe’s fastest growing, with 91 IPOs so far this year, more initial offerings than all of western Europe and ranking second after China among emerging markets, according to data compiled by Bloomberg.

Coal Producers

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

The next offering in the industry will probably come from Ukraine’s Coal Energy SA, which today announced plans to sell new shares in Poland to raise funds for expansion. The company gave no details, saying in an e-mailed statement that it awaits a regulatory approval of its IPO plans.

Goldman Sachs Group Inc., JPMorgan Chase & Co., Citigroup Inc. and UniCredit SpA are joint global coordinators and joint bookrunners for the JSW sale of 39.5 million shares. PKO Bank Polski SA, Ipopema Securities SA, Societe Generale SA, BRE Bank SA and Wood & Co. are also helping to manage the IPO.

-- Editors: John Kohut, Linda Shen.

To contact the reporters on this story: Zijing Wu in London at zwu17@bloomberg.net; Pawel Kozlowski in Warsaw pkozlowski@bloomberg.net

To contact the editor responsible for this story: Jeff St.Onge at jstonge@bloomberg.net.


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