In July Agora will release for public trading up to 4m employee shares, or 7% of the total shares outstanding, according to today’s “Parkiet”. The amount of shares, which employees bought at the nominal value of PLN 1, is similar to last year’s. Agora has been modifying its employee incentive plan recently, introducing closed-end investment fund, but employee shares would continue to be released for public trading.
Our view:
Based on previous years’ experience, we would not anticipate any major negative trading impact from the increased supply of shares. We reiterate our Buy rating for the stock.