UniCredit SpA, Goldman Sachs Group Inc., Citigroup Inc. and JPMorgan Chase & Co. will advise on the sale of coal producer Jastrzebska Spolka Weglowa SA as Poland’s Treasury continues record share offerings.
The banks will act as the global coordinators for the initial public offering, Deputy Treasury Minister Krzysztof Walenczak told reporters in Warsaw today. PKO Bank Polski SA, Ipopema Securities SA, Societe Generale SA and BRE Bank SA will also help manage the IPO of the company known as JSW.
The government wants to keep more than 50 percent in JSW, the European Union’s largest coking coal producer, after the offering, Treasury Minister Aleksander Grad said at the conference, adding that the size of the stake sold will depend on demand. The company won’t sell new shares in the process and the ministry will offer some shares to JSW employees.
The offering is part of the government’s 15 billion-zloty ($5.29 billion) asset sale program this year, a target which could increase as the cabinet announced today plans to sell as much as 14 billion zloty of shares in the country’s biggest lender PKO Bank Polski SA.
The total transactions that the ministry wants to carry out via the Warsaw Stock Exchange this year could beat last year’s record, Grad said. In 2010, sales through the bourse initiated by the Treasury generated 23.4 billion zloty.
Grad didn’t comment on the value of the JSW IPO. The company’s unaudited net income was about 1 billion zloty last year, Chief Executive Officer Jaroslaw Zagorowski told the PAP newswire in January. The company declined to comment on earnings when reached by phone today. The miner produced 13.1 million tons of coal last year, 70 percent of which was coking coal used by steelmakers.
In January, Zagorowski said the value of the IPO could be from 3 billion zloty to 5 billion zloty.
Increasing coal prices are pushing up the value of coal producers after December floods in Australia cut the global supply. New World Resources NV, the largest Czech producer of coking coal, which is also listed in Warsaw, has jumped 29 percent in Warsaw trading from Dec. 3 when flooding cut Australian production, giving a value of 11.9 billion zloty.
Average coking coal prices may rise to 194 euros this year from 141 euros a year ago, Petr Bartek, an analyst at Erste Group Bank AG, said by phone today, citing the Australian floods and recovering economies.
The ministry will file the JSW prospectus with the securities commission by April 20 and will start the offering about June 6, when the document is set to be published, Grad said. The government plans for the company, based in the southern Polish city of Jastrzebie Zdroj, to debut on the Warsaw bourse on June 30.