Today PKO BP’s free-float will rise from 38.05% to 48.5%. The two-year lock-up period on employees shares has expired on November 4, and today is the first day of the shares to be floated.
Our view: Employees’ shares represent 27.5% of the current free-float and the additional supply is widely expected to weigh on the stock price in the short-term. Should a substantial decline in the stock price materialise as expected, we would view it as a tactical opportunity to accumulate. We reiterate our Hold rating on the stock with a fair value of PLN 38.03 per share.