May 7 (Bloomberg) -- Immofinanz AG of Austria rose on its first day of trading on the Warsaw Stock Exchange, becoming the biggest property developer listed on central Europe’s fastest-growing equity market.
The shares added 0.6 percent to close at 13.41 zloty in Warsaw today, compared with a reference price of 13.33 zloty set by the Polish bourse yesterday. Immofinanz, which increased 0.3 percent to 3.221 euros in Vienna to value the stock at 3.6 billion euros ($4.7 billion), is the fifth company to start trading on the Warsaw bourse’s main market this year.
The Vienna-based developer seeks to become a purely commercial landlord by giving up its residential business to increase rental yield and cut debt. Net income rose to 106.1 million euros in the third fiscal quarter through January, from 6.32 million euros a year earlier, Immofinanz said in a statement on April 20.
Its “technical dual listing” in Warsaw didn’t involve a new share sale and was aimed at “expanding the circle of potential investors,” Chief Executive Officer Eduard Zehetner said in a statement on April 29. As Polish pension funds may not invest more than 5 percent of assets in securities that are listed exclusively in foreign countries Immofinanz’s debut in Warsaw will “remove this restriction,” he said.
To contact the reporter on this story: Piotr Bujnicki in Warsaw at firstname.lastname@example.org
To contact the editor responsible for this story: Wojciech Moskwa at email@example.com