The theoretical opening price (TKO) of Mentzen shares rose on Tuesday morning by almost 39%, to PLN 50. This is PLN 14 more than the price from the public offering at the end of March this year. At that time, investors were offered shares at PLN 36 per share. Trading was scheduled to start at 11:00: if the increase in quotations had been maintained and if it had been the same as in the pre-opening phase, the capitalization (i.e. the market valuation of all shares) of Mentzen SA would have amounted to PLN 50 million.
Shortly following opening, the price reached PLN 44.1 and the first transactions were conducted at this price, 22.5 percent higher than the public offering price. A dozen or so minutes later, the scale of the increases decreased, but it was still impressive: the price rose by 15 percent, to over PLN 41. By 11:15, 44 thousand shares worth almost PLN 1.9 million had changed hands.
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The following hours brought increasingly higher quotes. A moment following 12:00 the price rose by slightly over 26%, to PLN 45.50 per security. Around 13:30 the pace of increases accelerated to over 50% and the price reached PLN 54.80, which gave almost PLN 55 million of capitalization. Before 3 p.m., the quotes reached as much as PLN 66.15, which meant a price increase of as much as 84 percent. and the market valuation of the entire company at PLN 66 million.
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It must be admitted that this is a spectacular increase, which may bring very large profits to people who bought shares not only in the public offering a few months ago, but even to those investors who purchased the securities today on the stock market right following the debut, when they were valued at around PLN 44.
Closer to 4:00 PM, some investors began to realize profits and the increased supply of shares translated into a decrease in the growth dynamics: the price reached PLN 56, which still meant a 55% increase compared to the reference price (the price from the public offering). At the close of Tuesday’s session, the price was 57.39, i.e. a 59% increase.
The reference price on the day of Mentzen SA’s debut was PLN 36. The company’s shares were sold for this price during the spring public offering. | Stooq
It is also worth noting the high turnover: by 3:45 p.m., 280,000 shares in the company changed hands, worth approximately PLN 14.7 million. For comparison, the turnover on the entire NewConnect was worth less than PLN 19.3 million. The turnover in Mentzen shares on the debut session is clearly higher than even the leading companies from mWIG40, which includes companies with medium capitalization. For example, in the case of Bank Millennium, shares worth PLN 4 million changed hands today (as of 3:45 p.m.), Tauron PLN 3.4 million, and XTB PLN 8.3 million.
In the spring, Mentzen SA conducted a public offering before its debut on NewConnect. The politician managed get the maximum price for the shares sold. Investors signed up for the shares for over PLN 32 millionand since the offer was only for PLN 12.6 million, the interest exceeded the available pool 2.5 times. The offer included over 900 investors. For the so-called small stock exchange, this is a record.
Special offer
During the spring transaction, it was offered 350k shares, and the capital is divided into 1 million shares, so following the company’s debut, minority investors have 35 percent. Only existing shares were offered, no issue was planned.
Technically, the offeror of shares was the Mentzen Family Foundation. It owns 100% of the shares of Mentzen SA, whose shares were offered to investors and which owns 75% of the shares of the Mentzen Law Firm and 98% of the shares in the Mentzen Legal limited partnership.
Sławomir Mentzen is one of the richest MPs in the current term. According to his statement, he had 33.7 bitcoins, which were worth PLN 5.6 million at the time, a house worth PLN 3.5 million and two apartments worth over PLN 1.6 million. He valued other cryptocurrencies at PLN 1.8 million. In addition, there were two cars, some smaller items and savings, mainly in Polish zlotys, and shares of several companies from the Warsaw Stock Exchange. Together with the block of shares in the Mentzen company, valued at the public offering price at over PLN 23 million, this gives a total of regarding PLN 40 million of the Confederation leader’s assets.
Mentzen SA is the fifth debut on the NewConnect market this year. The company is listed under the abbreviated name “MENTZEN” and the ticker “XDD”. It is the 357th company listed on the small stock exchange.
Due to the regulations regarding the areas of tax and legal advisory activity, three companies operate within the Capital Group:
- Mentzen SA – is the parent company of the Capital Group. The company employs people who provide accounting services to clients of Mentzen Law Firm sp. z o. o.
- Mentzen Law Firm sp. z o. o. – a subsidiary company, entered into the register of legal entities authorized to perform tax consultancy. The company employs people dealing with tax consultancy and people dealing with customer service and quality control. Due to the concluded contracts in the subscription model, this company invoices the Group’s clients.
- Mentzen Legal sp.k. – a subsidiary company in which the profession of legal adviser and attorney is performed within the Group, participating in the provision of legal advisory services.
