AlleGROW! E-trader Allegro becomes largest IPO in Poland’s history

Allegro has become the largest IPO in Poland’s history after debuting on the Warsaw Stock Exchange today at a price of 65 PLN GPW/YouTube

Allegro has become the largest IPO in Poland’s history after debuting on the Warsaw Stock Exchange today at a price of 65 PLN.

The company is now likely to join the Wig20, the 20 leading shares on the market, possibly as soon as Thursday 15th October.

The share value was set at 43 PLN per share prior to the IPO, valuing the company at 44 billion PLN.

This makes Allegro the largest Polish company on the stock exchange, previously CD PROJEKT which is valued at 38 billion PLN, held this honour.

Body 1 cap to this: The share value was set at 43 PLN per share prior to the IPO, valuing the company at 44 billion PLN. GPW/YouTube

The demand from individual investors far exceeded the availability of shares and while 9.2 million shares were available, raising 400 million PLN, there was demand for 2.65 billion PLN worth of shares. 

This meant that there was an oversubscription of nearly 85 percent with investors who were seeking 1,000 shares only receiving 151 shares each.

The result of this means that investors seeking more shares will likely cause the price to skyrocket over the first few hours and days of trading.

Francois Nuyts, CEO of Allegro said: “The IPO seems to be a natural step for such a popular and recognizable brand as Allegro is undoubtedly in Poland. 

Francois Nuyts, CEO of Allegro said: “The IPO seems to be a natural step for such a popular and recognizable brand as Allegro is undoubtedly in Poland. Press materials

“Today, 12.3 million Poles use our services with a total of 117,000 small and medium-sized companies selling on Allegro. 

“Every year we invest in the development of our platform and we will not stop investing, the market potential in which we operate is very large. 

“As part of the public offering, we plan to issue new issue shares and the funds raised will provide us with greater financial flexibility.”

Some of the money raised from the IPO will be used to repay debts owed by Allegro but Nuyts dismissed suggestions that the financial stability of the company was dependant on the floatation: “We have excellent relations with our current investors who will remain shareholders of the company also after going public. 

Today’s IPO makes Allegro the largest Polish company on the stock exchange, previously CD PROJEKT which is valued at 38 billion PLN, held this honour.Press materials

“They have always supported our development and innovative projects. So I don't think the IPO will have any negative impact on our identity. 

“Of course, it will be our task to convince current and future investors that our strategy for Allegro is the right one.”

Many now see Allegro’s success as an opportunity for rejuvenation of the Warsaw Stock Exchange in general.

Dariusz Kuśmider, manager of the Aegon PTE fund, said: “I keep my fingers crossed that the Allegro IPO will positively affect the development of the WSE and the transformation of the index structure from the ‘old economy’ to more innovative and growth industries. 

“I hope that it may eventually convince foreign investors and domestic individual investors to the WSE to a greater extent.”