Auction site Allegro soars to record valuation on 1st day of trading

2020-10-12 19:03 update: 2020-10-13, 18:56
Phot. PAP/Bartłomiej Zborowski
Phot. PAP/Bartłomiej Zborowski
Polish auction site Allegro debuted on the Warsaw Stock Exchange (WSE) on Monday and immediately broke the WSE's record in valuation of a single company, reaching PLN 66 bln (EUR 14.8 bln), WSE's Piotr Borowski has said.

The e-commerce group is now the highest-valued company on the WSE and will enter the blue chip WIG 20 index after Monday trading, ousting lender mBank.

"It is the biggest debut in the history of our capital market," Borowski said.

The value of the offer reached PLN 9.18 bln (EUR 2.05 bln). "The company acquired more than PLN 900 mln (EUR mln) for development, with more than 36,000 individual share subscribers," Borowski added.

It is a big success for the company, Borowski said, as the company had been preparing for the debut even before the coronavirus pandemic and did not change its plans. "It continued the preparations and, looking back, it seems to have been a very good decision. Investors decided to trust the company and this resulted in a successful debut," he also said.

Allegro offered 1.023 bln shares for trading, and Monday's opening price was set at PLN 65 (EUR 14.53). The price reached the level of PLN 72.1 (EUR 16.12) during the day to end at 70.0 (PLN 15.65).

Currently valued at PLN 66 bln (EUR 14.8 bln), Allegro outstripped game developer CD Project (PLN 36 bln, EUR 8.05 bln), gas conglomerate PGNiG (PLN 30 bln, EUR 6.71 bln) and fuel firm PKN Orlen (PLN 19.12 bln, EUR 4.12 bln).

The Allegro group, which employs 2,400, operates Poland's biggest e-commerce platform, Allegro.pl, and a price comparison site Ceneo.pl. The group posted PLN 289.7 mln (EUR 64.82 mln) in profit in the first half of 2020.

Online shopping has been boosted by the coronavirus epidemic as people have turned to online purchases while traditional retailers have suffered from reduced sales. (PAP)