Studenac Group, a food retailer based in Croatia and one of the fastest-growing companies in Central and Eastern Europe (CEE), has announced the start of its initial public offering (IPO). The offering, which began on November 20, 2024, is intended to support the company’s efforts to expand its footprint and solidify its market presence.

The company plans to raise gross proceeds of approximately €80mn through the issuance of new shares. These proceeds will be used to fuel its aggressive growth strategy, which includes opening new stores, acquiring competitors in Croatia and Slovenia, and reducing its financial leverage.

The shares will be listed on the Warsaw Stock Exchange and the Zagreb Stock Exchange, with trading expected to begin shortly after the IPO concludes.

The IPO will consist of up to 55.2mn shares, representing 35% of the company’s share capital post-listing. This includes 24.1mn new shares issued by Studenac and 31.1mn shares offered by existing shareholders, the company said in a press release. 

The shares are being marketed to investors in Poland, Croatia, the US and other selected international jurisdictions. Retail investors in Poland and Croatia are invited to participate at a maximum price of PLN14.40 or €3.32 per share.

Growth strategy

“The launch of the initial public offering is an important step on Studenac’s path to the Warsaw and Zagreb stock exchanges,” said Michał Seńczuk, CEO of Studenac Group. 

Highlighting the company’s robust financial performance and rapid growth, he noted that Studenac has tripled its store network since 2018 to over 1,400 locations in Croatia and Slovenia as of September 2024. The company’s ambition is to reach 3,400 stores by the end of 2028.

Seńczuk highlighted Studenac’s focus on both organic growth and acquisitions. “Studenac intends to continue its organic growth by opening new stores and to pursue its proven strategy of market consolidation by acquiring other players in Croatia and Slovenia. We intend to use the proceeds from the issue of the new shares to finance this dynamic growth and to strengthen the Company’s financial profile,” he said. 

The company’s medium-term goal includes achieving a compound annual growth rate (CAGR) of 25-30% and a 30% revenue increase in 2024 compared to 2023.

Studenac’s proximity store format has been a driving factor behind its success, and its growth is part of a broader trend of thriving convenience store chains in the Central and Southeast Europe region and elsewhere in Europe. 

Private equity backing 

Studenac has undergone a major transformation since its acquisition by private equity firm Enterprise Investors in 2018. Michał Kędzia, a member of Studenac’s supervisory board and partner at Enterprise Investors, described the company’s journey as “a testament to its exceptional growth potential”.

“Studenac has become Croatia's largest food retailer by number of stores and the fastest growing in terms of revenue over the last five years … It’s worth noting that all of the company’s profits over the past five years have been reinvested in its continued growth. After the offering, we intend to remain a leading shareholder in Studenac, as we believe there is significant potential for further growth of the company, and we intend to capitalise on this,” Kędzia said, according to Student’s press release. He credited the management team, comprising both Croatian and international retail experts, for driving the company’s success.

The IPO price range for institutional investors has been set between PLN13.60 and PLN14.40, or €3.14 to €3.32 per share, with the final price to be determined after the bookbuilding process concludes on November 27.

The offering also involves Enterprise Investors' Polish Enterprise Fund VIII (PEF VIII), which currently holds a 90.08% stake in Studenac. PEF VIII and other selling shareholders, including Beragua Capital Advisory S.L. and Heunadel Retail Invest GmbH, plan to remain significant shareholders post-IPO, underscoring their confidence in the company’s long-term prospects.

Erste Group Bank AG, Jefferies GmbH, and J.P. Morgan SE are among the global coordinators and bookrunners for the offering.

Studenac’s IPO comes shortly after Polish convenience store chain Zabka launched its IPO on the Warsaw Stock Exchange in October. Zabka’s PLN6.45bn (€1.5bn) IPO put the company’s value at PLN21.5bn, placing it among the largest IPOs in Poland in recent years.