The Ministry of Treasury in Poland wants to sell the IPO shares for more than half of the energy company Tauron. The package should be enough for a few thousands of individual investors.
Looking at the positive experience of PZU (Powszechny Zakład Ubezpieczeń), the biggest insurance company in Eastern Europe. The privatization of PZU roused appetites for individual investors: reaching up to two hundred fifty thousand individual investors, and the price on the day of the debut gave a return of 16-percent guaranteed earnings.
The Ministry would like to repeat that success when selling shares in a public offering Tauronu Polish Energy SA, the second-largest energy group in Poland.
From the pool of shares sold, one fourth will be reserved for individual investors. And as in the case of PZU, the Ministry will introduce a maximum limit of shares purchased, so that individual investors were (partially or fully) protected against the threat of reduction orders. As in PZU, investors can buy shares worth up to 10 thousand polish zlotys.
However, the treasury ministry did not reveal the extent of Tauronu estimated value. Banks advisers are still working on the valuation of the company - explains the resort. At the end of 2009, the company's value was assessed at over 15 billion zł, today it seems more likely the amount from 12 to 13 billion zł. In 2009, the company earned about 900 million zł.
Assuming that the value of a group of around 13 billion zł, stock market debut of the group would be worth 6 billion zł. If each individual investor, would acquire the maximum amount of shares (ten thousand złotys), securities would be enough for about 150 thousand people.
Not only is the guaranteed number of shares encouragement enough to buy them. The company itself is preparing a "loyalty program" - the purchaser of shares who are customers of Tauronu will be able to count on a reduction in service costs for their personal accounts, such as for electricity, provided that the shares bought are held on to for up to a year.
Financial Supervision Commission should conclude its assessment of the company's prospectus at the end of next week. After June 3rd representatives of the Ministry of the Treasury to started a round of meetings with institutional investors - including foreign - which will be encouraged to buy shares Tauronu.
The company's debut on the Warsaw Stock Exchange is planned for the end of June.
Sale of shares in the group will have a significant impact on the revenues from privatization this year. To date, the Ministry of earning over 7 billion zł, which means that the annual plan of 25 billion (zł) has being implemented by 30 percent.