Komunikat KNF dot. EC Będzin SA

Following the price hikes of shares of Elektrociepłownia Będzin SA, a polish energy company, in June 2023, the Polish Financial Supervision Authority, KNF, launched an investigation in that matter primarily to determine whether or not share manipulation has taken place and trading should be suspended. The KNF particularly looked at the period between June 1, 2023 and June 22, 2023 during which the share price of the company increased more than tenfold, at times, compared to the prices before the surge.
The KNF has now presented the findings from the investigation in form of a report. The analysis suggests no market abuse took place, neither layering and spoofing, nor pump and dump, nor unlawful disclosure or use of inside information. In fact, the major shareholder of the company, Altum Group, increased its shareholding during that time from previously around 40% to then 45%. This action appeared to have driven the stock price „somewhat“, leading to other investors jumping in and and driving the price even further. Additionally – at the same time – the shares in free float continuously decreased, thus causing some tightness in the offer of shares and thus leading to further price increases.
Bottom line, so the regulator, the increase in the share price was caused by reasonable and normal trading activities. Hence, there is no evidence for the KNF to take any further measures.