Alior Bank SA jumped on its first day of trading on the Warsaw Stock Exchange after selling 2.1 billion zloty ($672 million) of shares in the biggest initial public offering by a private Polish company.
The shares rose as much as 8.4 percent and ended the day 6.8 percent higher at 60.9, valuing the bank at 3.9 billion zloty. The Warsaw-based lender sold 36.8 million shares in this month’s IPO at 57 zloty each, or at the lower end of its price range. The benchmark WIG20 Index rose 0.7 percent today, closing at the highest since August 2011 and extending this month’s gain to 4.8 percent.
“The sentiment generally improved on the market and this increase today is a modest gain for a company starting trade after an IPO,” Marcin Materna, a Warsaw-based analyst at Bank Millennium SA, said by phone today.
Alior, which owns Poland’s third-largest network, raised 700 million zloty from a new share sale to boost lending and fight competition as Banco Santander SA and Polish billionaire Leszek Czarnecki’s Getin Noble Bank SA step up expansion. Carlo Tassara SpA, its founding company owned by French investor Romain Zaleski, sold 24.5 million shares and plans to find a buyer for its remaining 34 percent stake in 2013 to cut debt.
Tassara will start the search for an industry investor for the bank in the first quarter of next year and expects to sell its stake at a premium, Helene Zaleski, chairwoman of Alior’s supervisory board, told reporters in Warsaw today.
Alior, whose IPO was the biggest in Poland since state-owned coal producer Jastrzebska Spolka Weglowa SA’s 5.37 billion-zloty sale in 2011 and the largest by a Polish company owned by private investors, currently trades 1.8 times its book value, according to Bloomberg calculations.
PKO Bank Polski SA and Bank Pekao SA, Poland’s two largest banks, are valued 1.9 times their equity, data compiled by Bloomberg showed.
With more than 680 branches, Alior has the biggest network after state-controlled PKO Bank and UniCredit SpA’s Pekao. Its net income almost tripled to 222.9 million zloty in the first nine months of 2012 from a year earlier.