Major Polish firms delay IPOs amid market uncertainty and valuation gaps

The Warsaw Stock Exchange (GPW) is awaiting the return of major companies considering initial public offerings (IPOs), but several prominent firms have put their listing plans on hold. Among the potential debutants are media, technology, retail, industrial, and logistics companies. The primary reason cited for these postponements has been a divergence in valuation expectations between sellers and buyers. Indirectly, recent years have been marked by significant global disruptions, including the pandemic and ongoing armed conflicts, which have unsettled supply chains and created market uncertainty.

Companies that cited these factors as reasons for delaying their IPOs may feel comfortable revisiting their plans when the market becomes more stable. Canal+ Polska, for instance, attempted to list twice, in late 2020 and again in 2021. The main objective was to clarify its ownership structure, as minority shareholders like TVN Media and Liberty Global Ventures Holding held a significant stake. While the company reported revenue growth in Poland driven by subscriber increases and improved advertising, the path to an IPO remains complex.

Similarly, the DESA group, centered around the DESA Unicum auction house, announced its intention to go public in 2021 but suspended its prospectus work in 2022. Recently, the company has increased its market communication, highlighting new auction formats and international expansion plans, alongside improved financial results. The cosmetic and hotel group Irena Eris also considered an IPO in 2023 but ultimately withdrew its plans. The company, largely owned by a family foundation, consistently pays dividends, and its management participates in an equity-based incentive program, though its growth rate remains modest.

These companies, having faced external shocks, may find the current environment more conducive to revisiting their public listing ambitions. The success of their future IPOs will likely depend on resolving internal ownership complexities and aligning valuation expectations with market realities. The GPW remains a potential venue for these companies, provided they can navigate the lingering uncertainties and present a compelling case to investors.