Zabka, often referred to as "Poland's 7/11," is set to launch an initial public offering (IPO) on the Warsaw Stock Exchange on October 17. The convenience store chain plans to offer 300 million shares priced between PLN 20-21.5 (EUR 4.67-5.02) each. CVC Capital Partners, the majority shareholder, intends to sell 266 million shares while maintaining control of the company. Other investors, including the European Bank for Reconstruction and Development, will also participate in the offering.

Analysts value Zabka at approximately EUR 5 billion, a significant increase from the EUR 1 billion CVC paid in 2017. The IPO could elevate Zabka into the WIG 20 index, which includes Poland's largest companies like Allegro and Dino. Zabka's leadership believes that investments in franchises, employees, and technology will enhance profitability and support from CVC stakeholders, even as the firm partially exits through the IPO.

Zabka operates over 10,500 stores in Poland and aims to use the IPO to fuel further growth, particularly in Romania, where it entered the market last December by acquiring grocery wholesaler DRIM Daniel for EUR 103.8 million. The company plans to establish 200 units in Romania by year-end and aims to open up to 1,000 stores annually, targeting a total of 19,500 shops in Poland and 4,000 in Romania.

CEO Tomasz Suchanski and chairman Krzysztof Krawczyk attribute the IPO to Zabka's consistent performance, driven by innovation and solid operations. They are optimistic about Poland's economic growth, which is expected to surpass that of Western Europe, and the effectiveness of their franchise model that incorporates advanced technology, including AI.

Currently, Zabka holds a 20% market share in Poland's convenience sector, but this represents less than 5% of the overall grocery market, indicating potential for further growth. In the first half of 2024, Zabka reported sales of PLN 11.1 billion, a 21.5% increase year-on-year, with adjusted EBITDA rising 33.5% to PLN 1.4 billion.

In addition to expanding its physical presence, Zabka is entering the quick-commerce (q-commerce) space and launching an online supermarket. This move reflects its commitment to adapting to changing consumer preferences, focusing on rapid delivery services, and leveraging AI for optimizing store locations and operations.