(Bloomberg) -- Polish convenience store chain Zabka Group SA saw its shares slump below their initial public offering price on their second day of trading, in a blow to Europe’s fourth-biggest listing this year.
The stock fell as much as 6% Friday and traded below its IPO price of 21.5 zloty, underperforming Poland’s WIG20 Index. Its Thursday debut saw an initial pop in the stock, before gains evaporated by the close.
The $1.6 billion IPO was Warsaw’s biggest since 2020, after it priced at the top of the marketed range and was oversubscribed by multiple times. The debut had been highly anticipated as a test of investor appetite, given a recent listings lull for the bourse, and carried hopes that it may encourage more share sales.
“This may make investors in the next IPOs more cautious regarding valuations,” said Sebastian Buczek, founder of mutual fund firm Quercus TFI SA.
Zabka Group declined to comment on the stock’s performance. Shares were down 3.7% to 20.7 zloty as of 1:34 p.m. in Warsaw.
Since Zabka’s debut, traded volume has totaled about 82 million shares as of Friday afternoon in Warsaw. Some investors noted that the first few days of trading may not be the best gauge of long-term sentiment toward the stock.
“The key will be in the delivery of financial results that meet guidance and other factors, such as entry to key stock exchange indexes,” said Dariusz Kusmider, fund manager at PZU TFI SA.
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