The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Why investors love Poland

After two successful privatizations this summer, foreign investors have become highly enthusiastic about Polish stocks. And there's more to come: some 80 companies have applied to the SEC to issue shares before the end of the year, and 60 of these would be IPOs. Antony Currie reports.

What happened on July 15?


Foreign investors have been getting excited about Polish stocks this year. Not only is GDP growth in Poland (7% in the first quarter of this year) the best in central and eastern Europe, but the stock market has developed into one of the region's most liquid, with a large retail as well as institutional investor base. Poland also managed to stave off a Czech- or Thai-style attack on its currency from foreign speculators this summer.

But the main reason for foreign investors' excitement was two big privatizations that came to the market within three weeks of each other this summer. First was the IPO of Bank Handlowy w Warsawy, followed three weeks later by KGHM, the seventh-largest copper-producing mine in the world.

Too much for the market?

Together they represented an increase of $1 billion in the stock exchange's market capitalization. By comparison, $3 billion had been added in the first six months of the year, mostly through the listing of national investment funds (which hold stakes in smaller state-owned enterprises now being privatized). There had been few problems with such a gradual increase, but some were concerned that $1 billion from two issues within three weeks would be too much for the market.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree