PKP, which plans to use the proceeds from the flotation to cut its debt and fund investments, is selling 50 percent minus 1 share of its unit in what is expected to be one of Warsaw’s largest flotations this year.

PKP Cargo, which is second in Europe only to Deutsche Bahn in terms of goods carried on the continent’s railways, set the initial price range in the offer at 59-74 zlotys per share.

Both PKP nor PKP cargo refused to comment on the pricing of the deal.

The European Bank for Reconstruction and Development , created in 1991 to help eastern Europe make the transition to the market economy, wanted to buy up to 7.5 percent in PKP Cargo, which is to debut in Warsaw on Oct 31.

PKP Cargo’s net profit nearly halved in the first six months of the year to 77 million zlotys on 2.3 billion in revenue, after it carried 52.8 million tonnes of goods.

Its core profit (EBITDA) stood at 312 million zlotys. (Reuters)