Studenac Group, Croatia's largest food retailer by store count, has announced the cancellation of its initial public offering (IPO) in Zagreb and Warsaw, citing unfavourable market conditions. 

The decision, announced on November 28, comes just days after the IPO launch on November 20, which was intended to raise €80mn to fund the company’s aggressive expansion plans in both Croatia and Slovenia.

“During our numerous meetings and discussions with Croatian, Polish, and international investors, they have shown genuine interest in Studenac's business model, appreciation for its dynamic growth and support for our expansion plans,” said Michal Senczuk, CEO of Studenac, in a statement emailed to bne IntelliNews. 

“However, due to the challenging conditions in the capital markets, we — together with our majority shareholder — have decided not to proceed with the IPO of the company’s shares.”

The offering was expected to list Studenac shares on the Warsaw and Zagreb stock exchanges, with 55.2mn shares on offer, representing 35% of the company’s share capital. The IPO aimed to support Studenac’s rapid expansion, including opening new stores, acquiring competitors in Croatia and Slovenia, and reducing financial leverage.

Long-term strategy

Despite shelving its IPO, Studenac remains optimistic about its strategic direction, Senczuk said. “We remain confident in our strategy and development direction, fully committed to continuing on this path without compromise,” the CEO said. He reaffirmed the company’s focus on organic growth and market consolidation.

Studenac, which operates over 1,400 stores across Croatia and Slovenia, had previously outlined its goal to reach 3,400 locations by the end of 2028. 

The proximity store format has been central to its success, aligning with the broader trend of thriving convenience store chains across Central and Southeast Europe.

The company’s growth has been fuelled by private equity investment. Since its acquisition by Enterprise Investors in 2018, the company has tripled its store count.

Studenac’s IPO plans followed in the footsteps of Polish convenience chain Zabka, which recently raised €1.5bn through an IPO on the Warsaw Stock Exchange. 

However, according to the company, the market environment has proved less hospitable for Studenac’s offering.

The company assured investors that payments for the offered shares would be refunded within seven days.

Despite the setback, the company indicated the possibility of revisiting the IPO in the future, while continuing with its expansion plans. 

“We intend to continue Studenac's organic growth by opening new stores and to pursue our proven strategy of consolidating the market through acquisitions of other players in Croatia and Slovenia,” Senczuk said.

“It is possible that, in the future, when market conditions are more favourable, we will revisit plans for an initial public offering and the listing of Studenac shares on the stock exchange.”