This represents an increase of as much as 18.9%, compared to the IPO price.

Yesterday marked the first trading day of SPAN which ended the day at HRK 208 per share. This represents an increase of as much as 18.9%, compared to the IPO price. We also note that the share opened at HRK 218 per share, which also represented its daily peek (representing a 24.6% increase compared to the IPO price). The first trading day of the share was quite active with a daily turnover of HRK 5.77m, accounting for 47% of the total turnover on the ZSE.

As a reminder, the IPO price was confirmed at HRK 175 per share, indicating that the company sold shares to qualified and retail investors for the amount of HRK 101.2m. To be specific, 578.2k shares were offered, representing 29.5% of the share capital. We also note that the oversubscription reached 40% at the price of HRK 175 per share.

Breaking down the allocation, qualified investors were allocated 55.9% of the transaction amount, while retail investors were allocated 35.6% and employees were allocated 8.5%.

The mentioned price represents the upper range of the offering (HRK 160 – HRK 175). The IPO price translates into a market cap of HRK 343m or P/E (2020) of 46x and EV/ EBITDA (2020) of 11.4x. According to the company’s prospectus, Span operated in 2020 with sales of HRK 613.8m, EBITDA of 31.5m (EBITDA margin at 5.1%), and a net profit of HRK 7.45m (profit margin 1.2%).