Allegro IPO Raises $ 2.3 Billion in Largest-Ever Warsaw Listing

(Bloomberg) – Ecommerce platform Allegro raised around 9.2 billion zlotys ($ 2.3 billion) in the biggest ever listing in Warsaw after selling more shares than expected thanks to strong demand for technology-related stocks in Europe.

Allegro sold 213.5 million shares at 43 zloty each, the top of a marketed range, the company said in a statement on Tuesday. On Friday, the group increased the total deal size by 14%.

The company raised Zloty 1 billion by selling 23.3 million new shares, while the rest came from private equity owners Allegro, Cinven, Permira and Mid Europa Partners. The action is expected to start trading on October 12.

If the underwriters fully exercise their option to sell more shares of the buyout companies, the size of the offering will increase to $ 2.7 billion, with 24% of the share capital available for trading. Allegro’s IPO is the largest ever for the Warsaw Stock Exchange, surpassing the PZU SA insurer PZU SA’s supply of 8.1 billion zlotys in 2010.

The IPO values ​​Allegro at $ 11.2 billion, which means it is expected to overtake computer game maker CD Projekt SA as Warsaw’s largest company. Allegro’s private investors bought the South African company Naspers Ltd. in 2016 for $ 3.25 billion.

Technological burst

Allegro’s listing is also expected to bolster the profile of a growing contingent of Polish tech stocks, as well as a number of gaming sector stock offerings.

The company is betting on the continued expansion of online shopping in Poland, a market of 38 million people and one of the most resilient economies in the European Union. Allegro relies on reduced fees, a loyalty program, a high number of local merchants, and market recognition to fend off competition from Inc. or Russian Aliexpress, if they expand into Poland.

The IPO demonstrates the growing divide between tech stocks and old-economy companies in the European IPO market. Belgian fintech Unifiedpost Group SA also valued its offer at the high end of an initial range and sold more shares than initially expected.

In contrast, China Yangtze Power Co. began trading in London on Friday after selling fewer shares than expected at the lower end of its price bracket, as did motorhome maker Knaus Tabbert AG ahead of its Frankfurt debut. last week.

Goldman Sachs Group Inc. and Morgan Stanley are the global coordinators on Allegro’s list, while Barclays Bank Plc, Bank of America Corp., Citigroup Inc. and Dom Maklerski Banku Handlowego SA are the bookkeepers.

Santander Bank Polska SA and BM PKO BP are bookkeepers and co-offer agents in Poland for the offer to individual investors. Bank Polska Kasa Opieki SA, Crédit Agricole SA, Erste Group Bank AG, Pekao Investment Banking SA and Raiffeisen Centrobank AG are co-lead managers. Lazard Ltd. is the financial advisor.

Retail investors were awarded 9.3 million shares on the IPO, the company said.

(Updates with transaction details)

© 2020 Bloomberg LP

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