(Bloomberg) — Polish laboratory operator firm Diagnostyka SA is planning an initial public offering on the Warsaw Stock Exchange, giving an early test of appetite for listings in Poland after a mixed 2024.
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The offering will involve the sale of existing shares owned by private equity fund Mid Europa Partners, which holds a 47.83% stake in the company, according to a statement published on Monday.
Diagnostyka doesn’t intend to sell new shares. The offering may value the company at more than 5 billion zloty ($1.2 billion), people familiar with the matter told Bloomberg last year.
The filing comes after IPO volume in Poland rebounded last year to the highest since 2021, data compiled by Bloomberg show, spurring hopes of a sustained revival. The $1.7 billion share sale of Zabka Group SA in October was the largest initial offering since 2020, but the convenience store chain’s shares have spent most of the past three months below their IPO price.
Citing “strong free cash flow,” the Krakow-based firm aims to pay dividends and plans to pursue acquisitions, according to the statement. In Poland it competes with Synevo, owned by Swedish Medicover AB and Alab Laboratoria, backed by German Limbach Gruppe.
“The planned IPO is an important step to support the further development of the company and help us continue to strengthen our position in the market and increase shareholder value,” co-founder and Chief Executive Officer Jakub Swadzba said in the statement.
The offering is being led by Banco Santander SA, Citigroup Inc. and Jefferies Financial Group Inc., the filing shows. Trigon Dom Maklerski SA, Wood & Co Financial Services, Pekao Investment Banking SA are also helping manage the transaction. Rothschild & Co is acting as financial adviser.
Diagnostyka runs some 1,100 blood collection points and 156 labs across Poland, serving about 20 million patients each year, according to the statement. Mid Europa bought a stake in Diagnostyka in 2011.
Between then and 2023 the group saw a compound annual growth rate of 24%, supported by various acquisitions, according to the statement. Recurring earnings before interest, tax, depreciation and amortization amounted to 383.4 million zloty for the first nine months of 2024.
(Updates with details from statement from paragraph five onwards)
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