GDANSK (Reuters) -Shares in Polish homebuilder Murapol rose 13.6% on their stock market debut in Warsaw on Friday, the market’s first initial public offering (IPO) in two years.
The company priced its IPO at 33 zlotys per share, giving it a valuation of 1.35 billion zlotys ($344.48 million).
Friday’s debut at 37.50 zlotys, boosted that to 1.53 billion, compared with listed rivals Echo Investment, Develia, Atal, and Dom Development ranging from 1.69 billion to 4.05 billion zlotys.
Murapol’s debut marks the end of a two-year initial public share offering drought for the Polish bourse which has only seen stocks transfer from its small companies market.
The company’s share price performance will be closely watched, especially given its high ROE and forecast of strong dividend yield, said BDM brokerage analyst Krzysztof Pado.
He added that the recent performance of the WIG index was also supportive.
However, he also said that the real estate index was in “lateral movement”, which could hamper investors’ appetite.
The analyst said long-term performance will depend on delivering management’s “ambitious” plans to increase sales to retail clients, and high dividend payouts.
The company has been operating for over 22 years in the country’s residential market across 19 cities.
The homebuilder says its competitive edge lays in geographic diversification as well as a large landbank.
At 0826 GMT the shares were up 14.9%.
($1 = 3.9189 zlotys)
(Reporting by Mateusz Rabiega; editing by Jason Neely and Elaine Hardcastle)
