Studenac Group S.A., Croatia’s largest food retailer by store count and one of Central and Eastern Europe’s (CEE) fastest-growing retailers, has announced plans to go public with a dual listing on the Warsaw Stock Exchange (WSE) and the Zagreb Stock Exchange (ZSE). 

The IPO is expected to raise gross proceeds of approximately €80mn from the issuance of new shares, part of which Studenac plans to channel into further expansion, including acquisitions and new store openings in both Croatia and Slovenia. 

Years of rapid growth

Since its acquisition by Polish Enterprise Fund VIII in 2018, Studenac has grown rapidly, tripling its store network to over 1,400 locations by late 2024. 

In a press release, CEO Michał Seńczuk highlighted the company’s rapid ascent from a regional chain to Croatia’s largest food retailer. “We have grown from a successful regional chain in Dalmatia to cover all of Croatia,” he commented. 

Studenac CEO Michał Seńczuk. 

Studenac also recently expanded into neighbouring Slovenia, in its first step beyond Croatia’s borders.

Studenac’s proximity store format has been a driving factor behind its success, according to Seńczuk. “A key driver of this growth has been our focus on the stores’ format, which allows us to be closer to our customers and meet their everyday shopping needs quickly and conveniently,” Seńczuk said. 

Its growth is part of a broader trend of thriving convenience store chains in the Central and Southeast Europe region and elsewhere in Europe. 

With discounter penetration at just 15%, compared to higher levels in neighbouring Central and East European (CEE) countries, proximity-focused retailers like Studenac are well-positioned to capture market share, the company said in its press release. 

This model has enabled Studenac to become a staple in Croatian communities, the company said, with 71% of its customers living within a five-minute walk of a store.

IPO to fuel expansion and reduce debt

The IPO will include both new and existing shares. With the funds raised, as well as funding its expansion plans, Studenac also aims to reduce leverage and improve its financial profile by lowering its adjusted net debt/Ebitda ratio. 

In addition, Seńczuk highlighted the IPO’s potential benefits for Studenac’s brand and visibility. “The listing will facilitate further growth by enhancing the company’s profile, brand recognition, and credibility,” he said. 

Looking ahead, Studenac’s management has set a target of more than doubling its number of stores to 3,400 by the end of 2028. This strategy involves both organic growth and continued acquisitions across Croatia and Slovenia, with plans to increase the number of new stores opened each year. 

According to Seńczuk, “the management's target is to grow group sales revenue by approximately 30% in 2024 compared to 2023 and at a compound annual growth rate of 25-30% in the medium term.”

Favourable market environment

In its home country Croatia, the fragmentation of the grocery retail presents a favourable environment for Studenac’s consolidation strategy, the company said. It has already carried out a series of acquisitions within Croatia. 

Studenac’s presence in residential and tourist-heavy locations also provides seasonal resilience, a significant advantage in a country that hosted 21mn tourists in 2023, a figure expected to grow following Croatia’s entry into the Schengen zone and the adoption of the euro.

Additionally, the Croatian grocery market, valued at €10.2bn, has experienced robust growth of 5.5% annually between 2018 and 2023, with a projected 4.8% CAGR over the next five years, according to analysis by strategy consultancy OC&C.

Studenac’s recent expansion into Slovenia through the acquisition of local retailer Kea aligns with its long-term goal to penetrate new markets. At the time of the deal, a company spokesperson told bne IntelliNews that the move was “a natural first step” towards international expansion. “Slovenia and the acquisition of Kea mark the beginning of a new chapter in our story, which started 30 years ago within Croatia’s borders and is now expanding to regional markets,” the spokesperson said. 

Slovenia, with a grocery market size of €5.9bn, offers similar consumer dynamics and spending patterns as Croatia, making it an attractive location for Studenac’s growth model. Solid Financial Performance

Between 2021 and 2023, Studenac nearly doubled its sales revenue from €309.5mn to €668.1mn, a compound annual growth rate (CAGR) of 46.9%. Adjusted Ebitda also grew significantly over the period, climbing from €31.3mn in 2021 to €65.9mn in 2023. The company’s 2023 pro forma sales revenue reached €702mn, with expectations for further growth in 2024.

Studenac’s management anticipates continued robust financial results, projecting a 30% increase in group sales revenue for 2024 and sustained growth at a 25-30% CAGR over the medium term. This aligns with the company’s goal to solidify its leadership in Croatia and expand further into neighboring markets.

A broader investor base

Studenac’s IPO is expected to attract retail and institutional investors across Poland and Croatia, as well as qualified institutional buyers in the US and selected investors in other international markets. 

“Croatian, Polish, and international investors will gain exposure to one of the fastest-growing companies in Croatia in terms of revenue, operating in an attractive market that offers both further dynamic scale growth and attractive levels of profitability,” said Seńczuk. 

The IPO comes shortly after Polish convenience store chain Zabka launched its IPO on the Warsaw Stock Exchange in October. The company’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, second only to the e-commerce giant Allegro’s PLN9.2bn listing in 2020. 

According to Studenac, Erste Group Bank AG, Erste Securities Polska S.A., Erste&Steiermärkische Bank d.d., Jefferies GmbH, J.P. Morgan SE, Santander Bank Polska S.A. – Santander Biuro Maklerskie and Banco Santander, S.A. will act as the joint global coordinators and ioint bookrunners for the IPO. 

Santander Bank Polska S.A. – Santander Biuro Maklerskie and Erste&Steiermärkische Bank d.d. have been selected as investment firms for Poland and Croatia, respectively.  Erste Group Bank AG has been appointed as stabilising manager.