News

New listing of the company ANSWEAR.COM

The company ANSWEAR.COM S.A. was newly listed on the GPW Main Market on 8 January 2021.
ANSWEAR.COM S.A. is the 434th company listed on the Main Market and the second new listing on the Main Market in 2021.

Key information– introduction of 15,349,000 series A, B, C shares and 1,841,000 rights in series D shares.

*as at the issue price of series D shares and the selling price of series A shares, i.e., PLN 25

Issuer’s history
The Issuer’s history goes back to 2011 when the online store www.answear.com was launched, initially operated by Invest PBB Sp. z o.o. S.K.A. In 2012, Krzysztof Bajołek and Arkadiusz Bajołek founded the company Wearco Sp. z o.o. Also in 2012, the online store and a group of fixed assets and intangible assets forming an organised part of the enterprise were contributed to the company Wearco Sp. z o.o. In 2019, Wearco Sp. z o.o. changed its legal status to a joint-stock company. The change of the company name to Answear.com S.A. was registered in the Business Register of the National Court Register on 25 September 2020.

Issuer’s business
The Issuer’s core business is electronic sale of clothing, footwear and accessories. The Issuer independently organises the selling process end-to-end, from the presentation of products on the website and in the mobile application, to the provision of product search tools, the ordering and customer service process, to the delivery of ordered goods and the handling of potential returns.
Answear.com is a leading platform of digital sales of brand clothing, footwear and accessories in Central and Eastern Europe active since 2011. The Company has a presence in seven CEE countries including Poland, the Czech Republic, Slovakia, Hungary, Romania, Bulgaria and Ukraine. Its sales are geographically diversified and none of the markets accounts for more than 30% of total revenue. The Issuer has a growing number of active clients which reached 1,065 thousand as at 30 September 2020.
The Company’s headcount is approx. 500 staff.
The Issuer’s mission is to remain a leading online fashion distributor in the CEE markets targeting the young segment (25 – 40 years old).
The Management Board of the Issuer has defined a targeted development strategy for the coming years. The Company is planning to defend and further consolidate its position in the existing markets, improve its sale parameters, and make determined efforts to acquire new clients. The Management Board is planning to further expand the product offer in order to effectively complete with local industry peers. The Issuer wants to offer the emerging middle class a new quality of shopping thanks to a more extensive and attractive offer, aspirational brands which display social status, and meeting the expectations of a convenient and rewarding shopping experience. The expansion of the offer and its continuous alignment with clients’ needs will ensure a fast moving inventory of products and consequently significant improvement of the generated sales margin.
The Issuer’s only subsidiary is WEARCO.CZ s.r.o. with its seat in Prague; its core business is to carry out selected marketing activities in the Czech Republic and Slovakia.

The company capitalisation is PLN 383,725,000 before the registration of new issue shares (i.e., for 15,349,000 shares) vs. PLN 429,750,000 after the registration of new issue shares (i.e., for 17,190,000 shares).

Public offering of series A and D shares:

The Offer covered 3,221,645 Offered Shares including:

• 1,841,000 New Series D Shares,
• 1,380,645 Series A Sold Shares held by the fund MCI.PrivateVentures FIZ (a subfund of MCI.TechVentures 1.0),

644,330 New Shares were offered to Individual Investors; 2,577,315 Offered Shares were offered to Institutional Investors, including 1,196,670 New Shares and 1,380,645 Sold Shares.

Issue price / selling price of the shares: PLN 25.00.

The Offered Shares were allotted on 23 December 2020 including:

• 644,330 New Shares were allotted in the Individual Investor Tranche – 96% reduction;
• 2,577,315 shares were allotted in the Institutional Investor Tranche.

In the offering, shares were taken up by 11,493 investors including 11,487 investors who took up new issue series D shares and 60 investors who took up sold shares.

Public offering value: PLN 80,541,125 including:

• new issue value (raised by the Issuer): PLN 46,025,000,
• value of sold shares (proceeds of the shareholder who sold the shares): PLN 34,516,125.

Purpose of the issue:
The Issuer expected to raise approx. PLN 65 million net from the New Share issue, to be invested in 2021-2022 as follows:
- PLN 25 million to be invested in the expansion of the Issuer’s product offer;
- PLN 5 million to be invested in the development of a Private Label;
- PLN 20 million to be invested in marketing;
- PLN 10 million to be invested in the expansion of the Issuer’s business to new markets;              
- PLN 5 million to be invested in the development of the warehouse and IT infrastructure.

As proceeds from the issue were approx. PLN 19 million less than expected, the Company needs to adjust its original investment plans.