Poland's Software Firm TTMS Plans to Use IPO Proceeds to Fuel Takeovers
-
Loading... - Conall Davies
- 21 Oct 2024
- 60 Views
- 0 Like
- 0 Comment
Polish software company Transition Technologies MS (TTMS) has announced its intention to raise up to 80 million zlotys (approximately $20 million) through an initial public offering (IPO) aimed at funding strategic acquisitions. The company set a maximum share price of 35 zlotys for the offering, which will consist of up to 2.4 million newly issued shares.
The proceeds from the IPO are earmarked for an aggressive acquisition strategy, particularly targeting markets in Western Europe and the United States. TTMS aims to enhance its presence in developed markets, with a specific focus on expanding its operations in Scandinavia, Germany, and Switzerland.
TTMS CEO Sebastian Sokolowski shared insights during a call with journalists, stating, "In the next year - 2025 - we would like to carry out another acquisition in the European market." He further indicated that any potential takeovers in the U.S. would likely occur in 2026 or 2027. The company plans to allocate approximately 68 million zlotys of the IPO proceeds specifically for these acquisitions.
Sokolowski emphasized the importance of strategic alignment in their acquisition approach, noting, "Our main assumption is that if we buy firms in the Danish or Swiss markets, these will only be companies that complement our existing entities." This strategy aims to avoid internal competition among subsidiaries and ensure a cohesive integration of new acquisitions.
The book-building process for institutional investors is set to take place from October 21 to October 28, while individual investors will have the opportunity to subscribe until October 25. TTMS plans to allocate 10-15% of the total number of shares on offer to individual investors, reflecting its commitment to engaging a broader base of shareholders.
Final pricing for the shares is expected to be announced on October 29, with trading anticipated to commence on November 15. As TTMS embarks on this IPO journey, the company is poised to leverage the proceeds to fuel its growth ambitions and solidify its position in the competitive software market.
