Two state-controlled Polish companies have had to step in to rescue the initial public offering of domestic chemicals company Tarnow after weak demand from investors threatened to derail Poland's first privatisation since 2006.

Tarnow had aimed to sell 16 million shares to fund expansion of chemical production but only 15.1 million were taken up raising a total of $135m ($171m). State-owned gas company PGNiG and chemicals producer Ciech bought 43% of the total offer, while individual investors bought 25%, leaving institutions with the remainder.