EI celebrates Eldorado IPO

Polish food retailer, Eldorado has made its debut on the Warsaw Stock Exchange. The company launched 6,375,600 shares on the parallel market at PLN15.45 per share, which was three per cent above its IPO price. Around PLN20 million was raised in the offering.

Enterprise Investors’ Polish Enterprise Fund committed $4 million to Eldorado in 1999, acquiring a 44 per cent stake. Following the IPO, the firm holds a 24 per cent stake in the company. A spokesperson for EI said: “We are extremely satisfied with the IPO per share valuation, especially considering difficult market conditions. It represents a return of over two times our cost.” EI hopes to achieve a full exit from the company within two years.

Eldorado is one of the largest food products distributors in Poland and has a 40 per cent market share in South East Poland. The company forecasts 2001 sales at PLN555 million, up from PLN487.8 million in 2000. The management plans to continue to develop the food retail chain nationwide and monies raised from the IPO will also contribute towards new logistic services.

EI was founded in 1990 and its funds include Polish Enterprise Fund IV, the Polish Enterprise Fund, the Polish Private Equity Fund I&II and the Polish-American Enterprise Fund. Total capital committed to these funds amounts to $725 million. The firm has invested over $600 million in Poland, Romania and Slovakia, and is the largest private equity group in the Central and Eastern European region. Enterprise Investors currently manages funds provided by major private European and US insurance companies, pension funds, banks and other financial institutions.