Poland’s Energa: first day slump | beyondbrics

Poland’s Energa: first day slump | beyondbrics:

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Initial public offerings, especially those tied to privatisations by Poland’s treasury ministry, have the reputation for being money spinners, but there is no such thing as a risk-free investment, as punters are learning on Wednesday on the Warsaw Stock Exchange. The shares in Energa, the country’s third largest power distributor, sagged in the first hours of trading.

Energa launched on the WSE in a privatisation worth 2.4bn zlotys ($787m), the bourse’s largest IPO in two years.

But the gloomy atmosphere on the Warsaw Stock Exchange over the last couple of days, coupled with what analysts said was a rush by employees to cash out by selling their share allotments, caused the price to droop. Energa was down by 4.5 per cent at 16.24 zlotys in early and very heavy trading."

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