Poland plans to sell as much as 282 million zloty ($90 million) of shares in an initial public offering of property company Grupa PHN SA as the government seeks funds to help finance the budget deficit.
The government is offering 10.8 million shares, or 25 percent of PHN, at the maximum price of 26 zloty a share, the Warsaw-based company said in a prospectus on its website today. The final price will be set on Feb. 4, when bookbuilding for institutional investors ends.
Poland plans to raise at least 5 billion zloty from asset sales in 2013 to curb public debt growth and boost investments. The Treasury Ministry and a state bank are selling today a 11.8 percent stake in PKO Bank Polski SA, the country’s largest lender, to stock market investors, according to a term sheet obtained by Bloomberg late yesterday. Other state offerings may include this year utility Energa SA and insurer PZU SA.
The government resumed plans to sell PHN, which estimates its net value of assets at 1.75 billion zloty, after shares of real-estate developers rebounded last year. Warsaw’s WIG Developers Industry Index (WIGDEV) jumped 14 percent in the last three months of 2012, its biggest quarterly gain in three years.
The IPO will be the biggest in Poland since the 2.1 billion-zloty offer of Warsaw-based Alior Bank SA in November. PHN plans to start trading on the Warsaw exchange by Feb. 13.
Citigroup Inc., UBS AG, Societe Generale SA and Deutsche Bank AG are helping manage the sale as joint global coordinators and joint bookrunners. BRE Bank SA, Bank Zachodni WBK SA, Wood & Co. and PKO Bank are joint bookrunners.
Poland will sell a controlling stake in the developer to a strategic investor after the IPO, according to the prospectus.
Grupa Radius, the real-estate developer controlled by Polish investor Robert Szustkowski, is seeking to gain control over PHN, it said this month. Mennica Polska SA, a Polish coin maker, is also interested in the sale, PAP reported on Jan. 11, citing Chief Executive Officer Grzegorz Zambrzycki.
PHN’s net loss widened to 142.9 million zloty in the first nine months of 2012 from 85.4 million zloty a year earlier.
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