Shareholders of Zabka, Poland’s largest convenience store chain, plan to raise up to PLN6.45bn (€1.51bn) from institutional and retail investors in the upcoming initial public offering (IPO), the chain’s biggest shareholder, CVC Capital Partners, an investment fund, said on October 1.

The IPO looks set to be the Warsaw Stock Exchange’s largest listing in four years and the top five of European IPOs in 2024 to date. 

The offering share price range is set between PLN20-PLN21.5 zloty per share, which would value the company up to PLN21.5bn. If the price range stands, this would make Zabka the 11th largest stock on Warsaw’s blue-chip WIG20 index.

According to Bloomberg, demand surpassed the offering size of 300mn existing shares - a 30% stake - within hours since the book-building process started on October 1. There is an option to increase the offer to 345mn shares.

Most shares in the offering come from CVC Capital partners. Other shareholders - Partners Group, the European Bank of Reconstruction and Development, and Amphibian (an entity of Zabka’s current and former managers) - are also selling.

The book-building period concludes on October 9 with trading expected to begin around October 17 on the Warsaw Stock Exchange.

Zabka’s IPO would be Poland's largest since Allegro’s, Poland’s top e-commerce platform, in 2021.

CVC Capital Partners acquired 77% of Zabka from Mid Europa Partners in 2017. Other important stakeholders are Partners Group, which holds an 18% stake, Amphibian and the EBRD.

Zabka’s sales grew 21.5% year-on-year to PLN11.1bn in the first half 2024, with adjusted EBITDA growing 33.5% y/y to PLN1.4bn.

The company has 10,500 stores in Poland and 20 in Romania, where it has operated since 2024 under the brand name Froo. 

Zabka plans to open 1,100 new stores in Poland alone in 2024 and 1,000 stores each year in Poland and Romania in the coming years. Zabka assumes Poland’s market potential is 19,500 stores and Romania’s 4,000 stores.