The sale of 20 million shares in KGHM S.A. bringing more than PLN 2 billion is yet another historic transaction that has taken place on the Warsaw Stock Exchange. This has been the largest financial operation based on book building ever to take place on the Warsaw Stock Exchange. Over a half of the offered shares have been placed among Polish institutional investors. Domestic pension funds, including the investment fund responsible for the management of, among other things, the pensions of KGHM employees, have become the largest group of investors to purchase the shares.

The sale of 10% of shares in KGHM is yet another historic deal after the subscription rights issue of PKO BP S.A. shares (PLN 5 billion) and the public offer of PGE S.A. shares (PLN 6 billion) to have been concluded recently on the domestic capital market. The third successful financial operation on such a scale within three months shows that the domestic financial market is becoming more and more mature, and proves that the Warsaw Stock Exchange is becoming an important regional capital centre on the map of Europe.

The sale of KGHM shares aroused widespread interest among investors. Scheduled for two days, the book building process was completed at a record pace, i.e. within one day, and the number of shares intended for sale was oversubscribed by 50%. The price of PLN 103 per share is among the top 11% of prices offered for shares in the company within the last 52 weeks.
 

56% of shares offered by the Treasury have been acquired by domestic investors, including financial institutions: for example, the Open Pension Funds have purchased as much as one-third of the available stake. A significant stake of shares has also been purchased by the investment fund responsible for the management of, among other things, the pensions of KGHM employees.
 

As a result, the shareholding structure of KGHM remains dispersed. In December 2009, the Articles of Association were amended, in order to protect the interests of the Treasury as the main shareholder in this company, which is of key importance for the Polish economy.

Proceeds from the sale of KGHM shares exceeding PLN 2 billion are a part of the Four-Year Privatisation Plan prepared by Minister Aleksander Grad in 2008. The Minister of Treasury would like to thank financial and legal advisors for the exemplary guiding through the transaction procedure and the highly successful completion thereof.