OKD, a Czech largest black coal mining company is planning to list its shares in London and Prague in the 1H of next year. OKD sold 10.9m t of black coal in 2004. In 2004, OKD’s sales totaled CZK21.4bn with EBIT at CZK4.6bn and net income reached CZK4.9bn.
Our view:
We would view listing of OKD on the Prague Stock Exchange as positive as it would increase investment opportunities and the attractiveness of the local market. In addition, we see a significant potential in the black coal mining segment given the increasing demand for electricity in the CEE region accompanied by falling capacities.