The owner of the Czech search engine Seznam.cz, Ivo Lukacovic, is considering an IPO. Seznam.cz is the major Czech language search engine, rivalling Google in popularity on the Czech internet. Seznam is assessed as the most visited internet company based in the country.

“My thoughts about Seznam’s IPO, which do not make sense from the rational point of view, can fall into the same category. It looks like a dumb thing, it hurts, maybe I will have to fight a little to achieve this, but in the end, it will turn out good,” Lukacovic was quoted as saying by the Czech Press Agency (CTK).

Lukacovic made the comments on the online platform Patreon, which has restricted access for users only. 

CTK reported that Lukacovic also said that if the IPO is successful Seznam would be the lone title in the given segment on the stock market.  

Seznam’s spokesperson Aneta Kapucianova described the owner’s words as “surveying of the terrain”, CTK wrote.

Analyst at the financial consulting company Consultlinked, Radim Dohal, estimated Seznam’s value to be between CZK20bn-35bn (€0.8bn to €1.4bn), adding that such an IPO would boost the Prague Stock Exchange.

“New emission, stable company, profitable, understandable business model,” Dohnal listed the positives, adding that for Lukacovic the IPO would bring liquidity.  

On the hand, “a forced opening up to investors and the public would at the same time mean an unpleasant opening up to the competition, particularly to Google, which has a low share in the Czech Republic”, Dohnal was quoted as saying by CTK.  

Czechia is one of the few countries in the world where Google faces formidable competition, the others being China and Russia, which have a record of state interventions on the internet, and Asian tech countries Japan, South Korea and Taiwan.  

A popular online news outlet, Seznam Zpravy is linked to Seznam’s search engine, as is the sports outlet Sport.cz and another outlet Novinky.cz, online television Seznam and several other services, including maps and online shops.

Seznam’s profits before tax increased by 6% year-on-year in 2023 to CZK1.36bn, CTK noted, with sales increasing by 0.2% to CZK5.94bn.

Lukacovic is regularly listed in the top 20 of the richest Czechs on the Czech version of the Forbes list. In the 2022 list, he sits 12th with an estimated asset value of CZK30.3bn. 

The Seznam owner is also active with other projects, including the international weather application Windy, which Lukacovic controls through his Cypriot entity Helifreak Limited.

In 2023 Windy reported sales of CZK217mn and CZK60mn in profits after tax, doubling up year-on-year. Windy registered sales of CZK128mn the year before, Czech online outlet Lupa.cz, which follows online developments, reported this month. Windy also bought its Swiss competitor Meteoblue this year, Lupa reported earlier. 

"I have known the founder of Meteoblue company for 10 years and he is my best friend. The whole time our companies were competing a little, but at the same we helped and gave advice to each other," Lukacovic commented then.