With an issue volume of two billion euros, the IPO of the Polish Amazon competitor Allegro in 2020 was the largest in Europe. At the debut, the stock was up 60 percent.
Little known in this country, Allegro is a big number in Poland. The e-commerce company claims to be one of the ten largest online retailers in the world. Now the competitor of US industry giants such as Amazon and Ebay has made a brilliant debut on the Polish GPW stock exchange – and has issued shares worth two billion euros. This makes the IPO the largest IPO of the year in Europe to date.
Allegro is the most valuable company in Poland
At the start of trading in Allegro shares on Monday – the actual IPO had already taken place at the end of September – the shares shot up by over 60 percent to 69.20 zlotys. Allegro became the most valuable company in the country in one fell swoop. The market capitalization is currently a good 15 billion euros, like that Handelsblatt writes. The issue price was 43 zlotys.
The company, which was founded 21 years ago in a garage in Poznan, Poland, raised around one billion euros when it went public. This money is now to be put into the settlement of debts and further expansion. However, it should not be about allegro.pl going abroad, for example to Germany. Recently, however, have also been on the Polish website foreign traders admitted. The platform currently has 117,000 sellers and 20 million monthly active users.
E-commerce giant wants to keep buying
Instead, according to the Handelsblatt, Allegro CEO François Nuyts, who previously worked for Amazon in Western Europe, among others, further acquisitions are to be pending. The previous acquisitions include ceneo.pl, Poland’s leading price portal with 12.3 million active customers. In addition, Allegro had incorporated the online ticket retailer e-bilet and only incorporated the Fintech FinAI at the beginning of the year.
In the first half of the year, Allegro increased its sales by 52 percent to 1.77 billion zlotys. The profit increased by 28 percent to 808 million zlotys. The Allegro Group’s e-commerce marketplace is said to have generated sales of 6.4 billion euros in the twelve months to June 30, 2020. According to market researchers, twice as many Polish Internet users are looking for products on allegro.pl than on Google.