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Poland's Largest Ever IPO Adds to Tech Boom

By Keith Noonan – Sep 29, 2020 at 5:08PM

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Allegro is set to break records with its IPO next month, and the online retailer's public debut could be influential.

Poland's e-commerce leader Allegro has set its initial public offering (IPO) for Oct. 12 and outlined details for its listing on the Warsaw Stock Exchange. The company expects to raise about $2.3 billion in its market debut by selling 213.5 million shares at a price of 43 zloty per share (or roughly $11.14 per share).

Allegro is now on track for the biggest initial public offering in the history of the Warsaw Stock Exchange. The offering values the company at roughly $11.2 billion and is also set to make the online retailer Poland's most valuable company, surpassing video-game developer and publisher CD Projekt. 

A person stacking blocks featuring shopping cart and chart icons.

Image source: Getty Images.

Allegro's IPO could make waves

Poland has one of Europe's fastest-growing economies, and its population of roughly 38 million people makes it the continent's ninth-most populated country. However, the Polish e-commerce market is still relatively young and has big room for growth. Allegro should also have expansion opportunities in other Central European and Eastern European countries.

Some analysts anticipate that Allegro's market debut will boost interest in Poland's technology sector, and it could encourage more companies to go public in the near future. The country has a fast-growing tech industry, but performance for the overall Polish stock market has been underwhelming in recent years.

As noted in a report on the Allegro IPO published by The Financial Times, the WIG20 index consisting of the country's 20 largest listed companies has delivered a total return of just 5.7% over the last decade on a Polish zloty basis, and the total companies listed on the Warsaw exchange has declined since 2016. It's possible that Allegro, and a surge of new tech-focused stock listings, could help boost the exchange.

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