Louis du Preez, Steinhoff Group CEO
(Louis du Preez, Steinhoff Group CEO)

Pepco becomes Poland’s largest IPO this year


Discount retailer Pepco has become the latest firm to list on the Warsaw Stock Exchange (GPW) in the biggest initial public offering (IPO) in Poland in terms of value in 2021 thus far.

Pepco had priced the IPO at 40 zlotys per share, giving the company a market capitalisation of 23 billion zlotys (EUR 5 billion).The offering -met with strong interest from a wide range of Polish and international institutional investors, as well as demand from individual investors-involved the sale of 92,466,602 existing shares and generated gross proceeds of approximately PLN 3.7 billion (EUR 0.8 billion).

South African conglomerate Steinhoff, the parent company of the Polish retailer, declared last month that it wanted to sell a minimum of 15 per cent of  Pepco  in order to expand the business, which currently has 3,246 stores located across 16 countries in Europe (as at 31 March 2021), a monthly customer base of 50 million and over 19,000 employees. The IPO cuts Steinhoff’s shareholding in Pepco to 78.9%

Commenting on the IPO Louis du Preez, Steinhoff Group CEO, said:

“The Pepco Group is a fantastic operation and a public listing fulfills a long term strategic objective for the business. With an excellent track record and a clear growth strategy, we are confident it will prosper as a listed business. We thank everyone that contributed to this process and wish Pepco Group every success in this new chapter”.


Pepco does not trade online and owns the Poundland chain in the United Kingdom as well as the PEPCO and Dealz brands in Europe.  The retailer which trades from more than 1,000 stores in Poland, is targeting 400 store openings across the Old Continent in its 2020-21 financial year as it expands its Pepco brand beyond central and eastern Europe.

Pepco Group has ambitious plans to more than triple the size of its current store portfolio over the next 5-7 years. For the six months to March 31, revenue growth was 4.4%, reflecting the opening of 225 net new stores. In the financial year ended 30 September 2020, Pepco’s revenues increased to EUR 3.5 billion.

PEPCO is widely recognised as one of Poland’s strongest brands and most dynamic companies. It has regularly won the Forbes Diamond Award as one of the country’s fastest-growing companies and the Superbrand Award for quality and trust among Polish consumers.

Goldman Sachs Bank Europe SE and J.P. Morgan A.G. acted as joint global coordinators for Pepco Group’s IPO while Warsaw-based law firm  Rymarz Zdort advised Pepco Group on Polish law matters related to the IPO.

The Warsaw Stock Exchange, which celebrated its 30th anniversary in April, generated sales revenue of PLN 112.3 million (+15.5% YoY), EBITDA of PLN 53.6 million (+7.1% YoY), and a net profit of PLN 38.7 million (+32.1% YoY) in the first quarter of the year.

Pepco Group has a primary listing on the Frankfurt Stock Exchange and a secondary listing on the JSE Limited.