WARSAW State-owned PHN is valued at up to $543 million by banks running an initial public share offer for up to a quarter of the loss-making real estate firm, market sources said on Tuesday.
Poland is selling a chunk of PHN, which was created in 2011 when the government pooled 180 different real estate and land holdings, to raise funds to help it reduce borrowing.
Several sources who have seen reports by six of the eight banks involved in the offer told Reuters PHN had been valued between 870 million and 1.7 million zlotys ($278-$543 million).
The company will release its issue prospectus on Wednesday.
PHN has said its portfolio is estimated to be worth 2.5 billion zlotys. It includes Warsaw office building Intraco, built in the 1970s and in need of a major overhaul, as well as villas in Warsaw's upmarket Wilanov district rented by foreign embassies.
It is also developing residential projects.
After completing the offer, which will be Warsaw's first IPO this year, Poland wants to find a strategic partner for PHN.
Poland had previously delayed plans to float PHN, with analysts saying they feared low demand due to a weak market for initial public offers combined with the firm's complex portfolio of assets.
Ebullient stock markets have recently encouraged some European companies to launch plans to float but an uncertain economic outlook could derail a recovery in new issues.
In the first nine months of last year, PHN reported a loss of 143 million zlotys on revenue of 141 million due to a 184 million zloty writedown in the fair value of its properties.
In 2011, the company lost 159 million zlotys after a writedown of 117 million.
Earlier this month, Radius Group's subsidiary Ringwood Financial received permission from the anti-monopoly office to buy a controlling stake in PHN, but the treasury said it was only a potential investor.
Citi, Deutsche Bank, Societe Generale and UBS Investment Bank are acting as joint global coordinators and bookrunners for the offer. DI BRE Banku, DM BZ WBK S.A. and Wood & Co. will serve as joint bookrunners and DM PKO BP is acting as offering agent and joint bookrunner.
None of the bookrunners was available for comment. ($1 = 3.1283 Polish zlotys)
(Reporting by Agnieszka Barteczko, Adrian Krajewski and Pawel Bernat; Editing by David Cowell)