The state will offer its remaining 1.73% (or 1.8m) stake in Mol between Nvember 21 and December 1, Zoltán Mester, the CEO of HVB Bank, one of he banks organizing the sale, announced on Monday. IEB Bank will also be ne of the sale's organizers. The price of the shares for retail subscription will be a maximum Ft 25,500 for purchases up to 200 shares. The sale may be closed after the first three days if all of the shares are sold. Shares which are not sold in the retail offering are expected to be listed on the Budapest Stock Exchange on December 6, pending a decision by the State Privatization and Holding Company.
Our view:
We expect the high interest to the SPO from the local domestic buyers, but to a smaller extend from the institutionals due to the seasonally inactive period as well as currently worsened environment for Oils. The potential purchase price might range between HUF 20,000 and 21,000 with around 5% discount to current market price. However, we do not think that domestic buyers will subscribe for entire 1.8m shares, which is worth ca. US$ 200m. As the investors might start withdrawing their shares from the market in order to take part in SPO, we can expect the downward pressure for the MOL stock price in the next days. We reiterate our Buy recommendation with a fair value of HUF 25,550 per share.