Poland’s Żabka Group, Europe’s largest convenience store chain, has announced its plan to go public by listing on the Warsaw Stock Exchange (GPW), marking what is expected to be one of the biggest IPOs in the history of the exchange. The company, which operates around 10,500 stores in Poland and recently began expanding internationally with locations in Romania, is expected to raise between $1 billion and $1.5 billion. This would give Żabka a valuation of up to $8 billion (approximately 30.6 billion zloty), according to reports from Bloomberg.
Żabka’s CEO, Tomasz Suchański, expressed optimism about the public listing, stating that the IPO will help the company leverage growth opportunities and create value for its stakeholders. He emphasized the potential benefits for franchisees and local communities, particularly through the tools and support provided by Żabka for running successful businesses.
The IPO will be an offering of existing shares, meaning no new shares will be issued, and the proceeds will go to current shareholders, including US private equity firm CVC Capital Partners. CVC, which acquired Żabka in 2017, has signaled its intention to remain a key shareholder in the company’s future growth and sees the IPO as a natural step in Żabka’s continued expansion.
Żabka has grown rapidly in recent years, with average annual sales growth exceeding 25% between 2021 and 2023. The company generated 19.8 billion zloty in revenue last year, up from 16 billion zloty in 2022. In the first half of 2023, Żabka’s revenues rose by 21.5%, and its sales grew by 10.3%. Nearly half of Poland’s population lives within 500 meters of a Żabka store, highlighting the brand’s dominant presence.
However, alongside its success, Żabka has faced criticism in Poland, particularly regarding its treatment of franchisees and its use of a legal loophole to operate on Sundays despite a government-imposed trading ban.
If the IPO raises the anticipated funds, it could rank among the top five debuts on the GPW, with the record still held by Allegro, an e-commerce company that raised 9.2 billion zloty in its 2020 IPO.
You Might Be Interested In:
