Two WSE companies have gained hundreds of percent. The market has noticed the government's financial injection
On Wednesday after 10 RAFAKO share price grew by 6.71 percent, up to PLN 1.81, with turnover of PLN 17.91 million, and the rafamet exchange rate gained nearly 20.8 percent, growing to PLN 61. Rafamet was a company with the highest increase among companies listed on the WSE, and Rafako noted the largest turnover.
– I decided to transfer over PLN 700 million to the Industrial Development Agency. This money will help, among others, two Racibórz companies. Of course, Rafako and it's about new production start. We will define what is possible. On the other hand, we will provide funds through the industry development agency, said the head of government on Tuesday. He added that the second company that will receive support is Rafamet, and helping measures should allow it not only to survive, but also development.
Rafako will change the profile of the activity
Over the past two weeks, So from the first prime minister's announcement regarding help, Rafako shares increased their value to the price of the morning on Wednesday, by as much as 330 percent.from PLN 0.42 to PLN 1.81. Whereas At the same time, Rafamet went up with a sky -high 440 percent, from PLN 11.3 on April 15 to 61 PLN on Wednesday morning. The WIG wide market index grew by about 6 percent at that time. However, it should be remembered that in recent years both companies have been low valued because of their problems.
In mid -April, the Prime Minister announced that the state would invest in the maintenance of Rafako, whose bankruptcy was declared a few months ago. Armaments production would be launched in the plant operating for years in the energy industry.
Rafako is a contractor for energy blocks and a manufacturer of energy equipment, for years one of the largest employers in the Racibórz region. Designs and produces boilers, among others on supercritical and fluidal parameters, as well as environmental protection devices, such as flue gas desulphurization and unit installations, as well as installations for thermal waste utilization and biomass combustion. The company provides services in the field of industrial construction and implementation of projects from the oil and gas industry.
The head of government announced two weeks ago that although the continuation of Rafako's current activity is impossible, Nothing prevents you from where boilers were once made, now launch arms production.
The management of Rafako filed for bankruptcy in September 2024 indicated the inability to agree with the key creditors of detailed rules for the conversion of the Company's obligations to shares in an increased share capital or an alternative scenario of further restructuring of the company's obligations that would allow you to reduce the debt. This, according to Rafako, could allow the company to regain the ability to obtain external financing for future orders.
The company's management explained that the loss of financial liquidity and the need to submit a bankruptcy petition led the termination by JSW Koks mediation conducted from Rafako before the General Prosecutor's Office and collect from the warranty deposit PLN 20 million together with a request for payment of PLN 35 million of warranty. The JSW Koks agreement with Rafako concerned the construction of a cogeneration power block fired with coke gas with a capacity of approx. 32 MW of electric and 37 MW heat. JSW Koks explained its actions by a significant exceeding by Rafako dates and costs of the contract.
In March this year The Ministry of State Asset has reported that it is looking for solutions for Rafako so that the company could continue to function. The ministry added that ARP participates in talks with a potential investor regarding the takeover of the company and creating a model of its financing.
There will be state support for a rafamet
Rafamet recently informed about the adoption of a restructuring strategy. It assumes, among others recapitalization of the company by the chief shareholder, i.e. ARP. Rafamet also established preliminary proposals for repayment of creditors.
The company stated that the management board intends to take restructuring activities, and strategic initiatives will include a technical audit of the production process, aimed at optimizing production logistics and adapt the employment structure to the company's production character, review of the company's assets, sales diversification, as well as stabilizing the financial situation – by providing funds for ongoing activity and the implementation of investments and initiatives.
Rafamet is a global manufacturer of special machine tools for processing railway wheels and a large -size supplier of specialist machine tools. The company provides machinery for the machine, energy, shipbuilding, metallurgy, aviation and reinforcing industries. Rafamet specializes in designing and producing innovative solutions adapted to the individual needs of customers in the world.
