Polish children’s goods retailer Smyk has announced plans to launch an initial public offering and list its shares on the Warsaw Stock Exchange. 

The company expects to raise about PLN150mn (€35.26mn) in gross proceeds from the sale of new shares, it said on October 8. The offering will include both newly issued shares and a partial sale of existing stock by AMC V Gandalf SA, Smyk’s sole shareholder. After the transaction, AMC V will remain the majority owner, while chief executive Michał Grom intends to retain indirect control of the company.

Smyk and the selling shareholder agreed not to sell or offer any additional shares for 360 days following the IPO, except for standard exemptions. The share sale will target retail and institutional investors in Poland, selected international institutions, and qualified US investors.

Individual investors are expected to receive between 10% and 15% of the total shares offered. The final price and size of the offering will be determined after the institutional book-building process.

The proceeds from the new issue will strengthen Smyk’s balance sheet through partial repayment of bank debt and support the group’s growth strategy. The management expects the debt repayment to reduce the net debt-to-adjusted EBITDA ratio to 1.6x and lower financial costs.

“Our goal is to become the leading omnichannel retailer in Central and Eastern Europe. We believe this is the right moment to invite new investors and debut on the Warsaw Stock Exchange,” Grom said. He added that the funds from the offering would help reinforce the company’s financial position and fuel further expansion.

Barclays Bank Ireland, Pekao Investment Banking and UniCredit Bank (Milan branch) will act as joint global coordinators and bookrunners, with Pekao Brokerage House serving as co-bookrunner and intermediary for the public offering.

Smyk operates in the children’s products market in Poland, where it held a 14.3% share in 2024, according to consultancy OC&C. The group also runs stores in Romania and Ukraine and plans further expansion across Central and Eastern Europe, starting with new brick-and-mortar openings followed by online stores. At the end of June 2025, Smyk had 253 stores in Poland, 35 in Romania and 12 in Ukraine.

The company intends to open more than 35 new stores across Poland, Romania, the Czech Republic, Slovakia and Bulgaria between 2025 and 2026.

In 2024 Smyk’s revenue reached PLN2.25bn, up 6% year on year, while operating profit rose 91% to PLN118.9mn. Adjusted EBITDA grew 18% to PLN301.7mn. In the first half of 2025, the company recorded PLN985.1mn in revenue, up 0.5% y/y, and a PLN15mn operating profit compared with a PLN12.3mn loss a year earlier. Adjusted EBITDA for the period rose 26.9% to PLN105.3mn.

Smyk forecasts annual capital expenditure of around PLN60mn and plans to recommend a dividend payout of 30-50% of net profit starting from 2027, based on 2026 earnings. “The dividend payout may be increased in years of exceptionally strong financial performance,” the company said.