Page 21 - bne magazine February 2024_20240206

bne February 2024 Companies & Markets I 21
government’s control over the energy market and infrastructure in the country in the wake of the energy crisis and the Russian full- scale invasion of Ukraine in February 2022. It wants to boost energy production to compensate for the phase-out of coal-fired plants, prepare for higher electricity demand due to the development of e-mobility, and ensure the country remains self-sufficient in power.
It has been considering various options, a leading one being to divide the company and take full control of a part generating nuclear energy and potentially other generating assets, while leaving a rump with a higher free float on the stock exchange. This would enable it to invest in building new nuclear reactors without being obstructed by shareholders concerned about the viability of the CZK160bn (€6.47bn) investment.
To facilitate a split of the company, the cabinet has proposed a legislative change to lower the vote majority required for such key decisions to 75% from 90%, guaranteeing the state would prevail in the vote. However, parliament has yet to pass this proposal amid an outcry from minority shareholders. In his interview, Koblic speculated that the government may now be moving away from this plan.
Uncertainty over the government's plans has hit CEZ share prices. The stock is down about 20% since its 15-year high reached last year, underperforming other European utilities in the period, Bloomberg reported.
CEZ, with a market capitalisation of $23bn (€21bn), is the largest public company among the post-communist EU member states of Central and Eastern Europe. It has become an even more crucial player on the local bourse after several stalwarts left it, including Czech financial group's PPF’s telecom O2 and media group Central European Media
Traded volume within PX Index shrank 87% between 2007 and 2023
Source: Prague Stock Exchange
Enterprises (CME), Zentiva pharmaceutical company and coal mining New World Resources (NRW), Bloomberg noted.
From a peak in 2007 to the end of 2023, the turnover of the main PX index decreased by 87%. Last year turnover dropped by 26% year-on-year to CZK123.5bn.
The bourse has also failed to attract any IPOs in recent years, although powder metallurgy company Gevorkyan from the new START index for small and medium-sized companies last year graduated to the main bourse. START itself has had 15 IPOs since 2018, Bloomberg reported, but its total market capitalisation is still only $500mn.
In the interview, Koblic proposed that the cash-strapped government should instead sell more state shares in CEZ bourse and list the state-controlled Prague Airport, which would also increase the attractiveness of the bourse.
“People keep saying the government could boost the capital market by floating more assets,” Koblic said. “But there is not much more to float, other than the rest of CEZ and the airport.”
Turkey’s Nasdaq-listed e-commerce lossmaker
Hepsiburada talks up destinations for growth
Akin Nazli in Belgrade
Turkey’s e-commerce platform Hepsiburada (Nasdaq/ HEPS) on January 7 hit the headlines with some talk about entering the Ukraine market. CEO Nilhan Onal Gokcetekin gave an interview to Bloomberg and reportedly disclosed the Ukraine plan.
Bloomberg also noted that the Hepsiburada share price was up 173% y/y. The company’s shares have started to recover since sinking into penny-stock territory, it said.
(The movie The Wolf of Wall Street is a good watch for explanations of how penny-stocks and initial public offerings (IPOs) sometimes work.)
Hepsiburada, formally D-Market Electronics Services, intends to play the long game in Ukraine, Bloomberg also reported, adding that Kosovo and the Middle East were other destinations Gokcetekin was eyeing for potential growth.
Gokcetekin was also cited as saying that she has banned discussions of the company’s share price performance within company quarters.
As regards Hepsiburada’s financials, the so-called gross merchandise value (GMV) figures, namely the combined sales volume generated by the sellers on the platform, are in circulation, while Bloomberg also noted that across a year the
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