Polish MNO P4 to launch an IPO

Play Communications, the owner of Polish mobile operator P4 (Play brand), announced its intention to launch an IPO this summer. Play wants to apply for listing and admission of the company’s ordinary shares on the main market of the Warsaw Stock Exchange.

During the IPO, existing shares owned by the two of Play's shareholders (Greek fund Tollerton Investments and Icelandic Novator Partners) will be sold. It is yet unknown if shareholders plan to keep control of the company after the IPO (nor is the volume of the shares to be offered). The value of the operator is estimated at around PLN 12bn (€2.9bn), thus the value of IPO should amount at around several billion zlotys. In October last year an attempt to sell the company in the auction was abandoned after bids made by private equity firms did not meet Play’s expectations.

P4 is the second-largest mobile operator in Poland, with 27% share of the market. The company generated PLN6.1bn (€1.5bn) in sales revenues last year, while its EBITDA amounted to PLN2bn (€0.5bn). It is expected that P4 will raise up to €700m through the float, with the proceeds used to reduce debt and pay off high-yielding bonds. The company also plans to pay a dividend of PLN650m (€155m) in 2017 and pay out between 65% and 75% of its free cash flow in dividends from 2018.