Allegro‘s initial public offering (IPO) on Monday (Oct. 12) was a huge success, with its brand-new stock reportedly surging in value by 50 percent. That makes it Europe’s biggest IPO of the year, with Allegro’s market value hitting $17.6 billion, Reuters reported. Poland-based Allegro’s website attracts 20 million visitors a month and is a top eCommerce brand in central Europe.
“When pricing deals like Allegro, it is more important to build momentum than to maximize price on day one,” said Christoph Stanger, who co-heads Goldman Sachs’ European equity capital markets business, which helped organize the IPO. He told Reuters that private equity owners Cinven, Permira and Mid Europa will look to cash in on the stock surge through follow-on placements.
Only one-quarter of Allegro was floated in the IPO, Stanger added. The company was started more than 20 years ago, offering services similar to eBay’s.
Allegro’s IPO success follows an uptick in successful IPOs in the U.S., as well as a rush of consumers’ retail dollars into eCommerce during the coronavirus pandemic.
A PYMNTS report estimates that online marketplaces can capture $129 billion opportunity presented by small business sellers. These marketplaces have already been a key component in the growth of eCommerce spanning retail goods, groceries and food for delivery.
U.S. sellers are flocking to these marketplaces to offer new and used goods to shoppers, as either a primary or secondary source of revenue.
One downside for sellers is the amount of time it takes to turn marketplace sales into cash on hand. PYMNTS research shows there is a keen interest in the issue — and that there is an opportunity for marketplaces to grow if they adopt real-time settlement options.