2010-03-11 --- www.rp.pl/wegiel --- Bogdanka out of WIG20
The Lublin-based mine privatised finally on Tuseday has no chances to enter the index of the biggest WSE companies.“In our view Bogdanka’s chances to enter WIG20 are purely theoretical as the company is too small,” says Paweł Puchalski DM BZ WBK analyst. “We should remember that PZU’s and Tauron’s debuts cannot push Cersanit out of the index as free float of any of those companies may not be big enough to initiate extraordinary revision (at least 5% of the whole stock exchange free float is required – ed.).
Due to the fact that both PZU and Tauron are placed on the WIG ranking list higher than Bogdanka, it is not possible for the latter to enter WIG20 after the debuts of such companies,” adds Puchalski.
He admits that Bogdanka can enter WIG30 if the Warsaw Stock Exchange decides, in accordance with previous announcements, to create such an index. “We can see Bogdanka there together with Netia and Kernel Holding,” says Puchalski.
Bogdanka comments the possible entrance to WIG20 with caution. “At the moment we have no chances” admits Tomasz Zięba, the Company’s spokesman.
The stock exchange compound of the shares of the three smallest WIG20 companies amounts to PLN 1.06 – PLN 2.1 billion. Although Bogdanka’s result is PLN 2.6 billion, the next requirement that has to be met to enter WIG20 is 10% of shares in free float worth at least EUR 1 million. The number of Bogdanka’s shares on Warsaw Stock Exchange slightly exceeds 34 million. Their 10% would be worth approximately EUR 68 million (Open Pension Funds, which bought the shares on Tuesday and will recognise them in accounting books on Friday, have 24 hours from the moment of settlement to reveal if they hold more than 5% of shares in the Company). However, Bogdanka does not meet one more condition – suitable share in total index turnover in the last 12 months.
According to Michał Marczak, the analyst of DI BRE (the mine’s selling shareholder), it will be difficult for Bogdanka to enter WIG20, but the Company has big chances to enter WIG30. He did not want to comment upon the potential change of recommendations for the Company (DI BRE increased the recommendation in December to “buy” and established the target price for shares in the amount of PLN 80.1). He did not comment on the price, either - PLN 70.5 that the State Treasury obtained by selling on Wednesday in a block 46.7% of its shares in the Lublin mine to Open Pension Funds for the price which exceeded PLN 1.1 billion.
On Thursday Bogdanka’s share price during the day amounted even to PLN 81.45 but on closing it rose only by 0.89% to reach PLN 79.20 which is less than the record-breaking amount of 15 January (PLN 83.50). The turnover reached almost PLN 40 million which was the ninth result on the Warsaw Stock Exchange.
Karolina Baca 11-03-2010 www.rp.pl/wegiel
However, if the rating of 30 biggest companies is created, Bogdanka will have its place there.
Due to the fact that both PZU and Tauron are placed on the WIG ranking list higher than Bogdanka, it is not possible for the latter to enter WIG20 after the debuts of such companies,” adds Puchalski.
He admits that Bogdanka can enter WIG30 if the Warsaw Stock Exchange decides, in accordance with previous announcements, to create such an index. “We can see Bogdanka there together with Netia and Kernel Holding,” says Puchalski.
Bogdanka comments the possible entrance to WIG20 with caution. “At the moment we have no chances” admits Tomasz Zięba, the Company’s spokesman.
The stock exchange compound of the shares of the three smallest WIG20 companies amounts to PLN 1.06 – PLN 2.1 billion. Although Bogdanka’s result is PLN 2.6 billion, the next requirement that has to be met to enter WIG20 is 10% of shares in free float worth at least EUR 1 million. The number of Bogdanka’s shares on Warsaw Stock Exchange slightly exceeds 34 million. Their 10% would be worth approximately EUR 68 million (Open Pension Funds, which bought the shares on Tuesday and will recognise them in accounting books on Friday, have 24 hours from the moment of settlement to reveal if they hold more than 5% of shares in the Company). However, Bogdanka does not meet one more condition – suitable share in total index turnover in the last 12 months.
According to Michał Marczak, the analyst of DI BRE (the mine’s selling shareholder), it will be difficult for Bogdanka to enter WIG20, but the Company has big chances to enter WIG30. He did not want to comment upon the potential change of recommendations for the Company (DI BRE increased the recommendation in December to “buy” and established the target price for shares in the amount of PLN 80.1). He did not comment on the price, either - PLN 70.5 that the State Treasury obtained by selling on Wednesday in a block 46.7% of its shares in the Lublin mine to Open Pension Funds for the price which exceeded PLN 1.1 billion.
On Thursday Bogdanka’s share price during the day amounted even to PLN 81.45 but on closing it rose only by 0.89% to reach PLN 79.20 which is less than the record-breaking amount of 15 January (PLN 83.50). The turnover reached almost PLN 40 million which was the ninth result on the Warsaw Stock Exchange.
Karolina Baca 11-03-2010 www.rp.pl/wegiel
However, if the rating of 30 biggest companies is created, Bogdanka will have its place there.