Polish e-commerce platform Allegro plans to raise up to 8. 1 billion zlotys ($ 2. 1 billion) in an initial public offering in Warsaw, which is expected to be one of the biggest announcements in the country.
Private equity owners at Allegro, Cinven, Permira and Mid Europa Partners are providing more than Zloty 7 billion existing shares, while the company sells Zloty 1 billion new shares, according to a prospectus unveiled Tuesday. In total, around 187. 8 million shares are announced at between 35 and 43 zloty each.
Allegro is exploiting the market amid increased generation and online retail stocks, which have been backed up through visitor calls for blockades caused by the coronavirus pandemic. The generation-dominated Nasdaq composite index has increased by 20% this year, while e-commerce giant Amazon. com Inc. rebounded by 60%.
“It turns out that there is an unusual view that Polish e-commerce has a bright future, that deserves interest, as long as the Nasdaq doesn’t give in in in the next two weeks,” Alo Kullamaa, fund manager at SEB Investment Management. He said via email. ” The consultation is what will happen next year when the company does not have such a closing tailwind and the festival could simply increase. “
If all stocks are sold at the most sensible value in the indicative value range, Allegro’s board could exceed the country’s largest initial public offering to date: the 8. 1 billion zlotys offered by insurer PZU SA in 2010, according to knowledge compiled through Bloomberg.
After the IPO, 18. 3% of the overall percentage capital will be held to negotiate. There is an additional option to overalllocate 15% of existing percentages, which can bring total revenue to 9. 3 billion zloty.
Allegro is priced at $11. 7 billion at the time of the IPO if it is the most sensible in the range, meaning it can outperform video game manufacturer CD Projekt SA, which has a market price of approximately $10 billion, as the largest in Warsaw. Alegro’s directory also helps the Polish inventory market reduce its reliance on old-economy industries and raise the profile of generation inventories, which are rare in Europe.
The value of the offer is scheduled for September 28 and shares are expected to start trading on October 12. Retail investors will also participate in the IPO and may be awarded up to 5% of the transaction, according to a statement. .
Allegro’s sponsors bought the company from Naspers Ltd. , South Africa in 2016 for $3. 25 billion.
Allegro’s position at the intersection of generation and retail, along with the expected addition of inventory to the benchmark for Polish stocks, has led some analysts to describe the IPO as “inevitable” for investors.
The company is confident of the continued expansion of online grocery shopping in Poland, a market of 38 million more people and one of the most resilient economies in the European Union. While Allegro’s leadership position in the country does not appear to be at risk, it is not a potential competitive risk of Amazon. com.
Allegro’s IPO occurs when shoppers turn to online sites to buy everything from clothing to family items, after closures in Europe kept others indoors for much of the year. THG Holdings Ltd. de Britain also increased the wave, lifting 1. 88 billion pounds ($2. 4 billion) before 25% when it debuted in the public market last week.
For Allegro, which generates more than 80% of its cash through royalties in its market, the pandemic increased sales by 52% to 1. 77 billion zloty in the first half, while adjusted profit increased by 28%. In the winds of the virus, Allegro is betting on a small build-up in Poland’s online retail market share, which was about 8. 4% in 2019, compared to 18% in the UK and 27% in China.
Allegro is a horny asset that operates in peak market situations and is traded at full valuation, said Union Investment fund manager Privatfonds Ekaterina Iliouchenko.
The Warsaw Stock Exchange is experiencing a renaissance, after several years of few or no transactions. WIPO Hopes, as cell casino application manufacturer Huuuge Inc. and video game studio People Can Fly Group SA, presented brochures this month to capitalize on the popularity of video games. among others trapped at home. On Monday, biotechnology company Captor Therapeutics joined the board’s fever.
Goldman Sachs Group Inc. and Morgan Stanley are the global board coordinators of allegro, while Barclays Bank Plc, Bank of America Corp. , Citigroup Inc. and Dom Maklerski Banku Handlowego SA are accountants.
Santander Bank Polska SA and BM PKO BP are accountants and co-agents in Poland from the retail tranche. Bank Polska Kasa Opieki SA, Credit Agricole Financing and Investment Bank, Erste Group Bank AG, Pekao Investment Banking SA and Raiffeisen Centrobank AG are co-leads. Lazard Ltd. is the monetary adviser.
– With maciej Martewicz, Adrian Krajewski and Piotr Bujnicki