PKP Cargo Drops as Polish Rail Offers $190 Million StakeMaciej Martewicz
PKP Cargo SA, the European Union’s second-largest rail freight company, declined the most since its Warsaw bourse debut in October as the Polish state railway is selling part of its controlling stake.
The shares fell as much as 6.3 percent to 74.75 zloty and traded 2.4 percent lower at 77.85 zloty as of 10:11 a.m. in Warsaw, valuing the stock at 3.49 billion zloty ($1.1 billion). The benchmark WIG30 Index rose 0.9 percent.
Polskie Koleje Panstwowe SA, known as PKP, is offering 7.63 million shares, or a 17 percent stake in the Warsaw-based unit to institutional investors, Cargo said in a regulatory filing late yesterday. The railway, which is selling assets to cut its own debt, hired Morgan Stanley, PKO Bank Polski SA and Societe Generale SA to help manage the country’s second-biggest share offering this year.
PKP sold 20.9 million shares in Cargo, the EU’s sole publicly traded rail-freight company, at 68 zloty each in an initial public offering last year, cutting its stake to 50 percent. The stock jumped 19 percent on its first day of trading on the Warsaw Stock Exchange on Oct. 30 after demand in the IPO was six times higher than offer.
The 1.03 billion-zloty sale of Vattenfall AB’s stake in power utility Enea SA in January was the biggest share offering in Warsaw this year.