Diagnostyka Makes Its Mark: A Major IPO on Warsaw Stock Exchange

Diagnostyka's Warsaw Stock Exchange Debut

On February 7, 2025, Diagnostyka, a prominent medical diagnostic services provider in Poland, made a landmark debut on the Warsaw Stock Exchange. Backed by MidEuropa, a key player in private equity investment in Central Europe, Diagnostyka's public listing has been met with considerable enthusiasm from both domestic and international investors. The debut resulted in a closing market price that valued Diagnostyka at over €1 billion, solidifying its position as the second-largest publicly listed healthcare service provider in Central Europe and among the top seven in Europe.

The initial public offering (IPO) was priced at PLN 105 per share, reaching the maximum of its anticipated range. As a result, it generated gross proceeds exceeding €400 million for investors associated with the MidEuropa fund. Notably, retail investors displayed extraordinary interest, leading to a significant reduction in orders for the retail tranche, which constituted 5% of the overall offering, with a reduction rate of 94%.

Founded 27 years ago by CEO Dr. Jakub Swadzba and two co-founders, Diagnostyka has experienced remarkable growth over the years. Through a meticulously executed buy-and-build consolidation strategy, along with substantial investments in advanced lab infrastructure and digital transformation, the company has evolved from a regional entity into a key national player. Serving over 20 million patients each year, Diagnostyka plays a vital role in improving access to essential diagnostic services in Poland.

Matthew Strassberg, a partner at MidEuropa and head of healthcare, expressed satisfaction regarding the enthusiasm for Diagnostyka's share offering. He emphasized that this interest reflects the company's focused strategy and proven history of strong execution. Throughout the partnership with MidEuropa, Diagnostyka expanded via over 120 acquisitions, achieving an annual revenue growth rate of 24% and an eightfold increase in laboratory tests conducted.

In remarks about the IPO, Dr. Swadzba elaborated on the supportive role that MidEuropa has played throughout their partnership, which spanned nearly half of Diagnostyka's operational history. He acknowledged the transformative nature of the investment and expressed eagerness to engage with public market investors in this new chapter.

The listing of Diagnostyka is one of the most significant IPOs on the Warsaw Stock Exchange in recent years and represents a considerable exit for private equity investors. It follows MidEuropa's successful IPO of the e-commerce platform Allegro in 2020, which was one of the largest to date on the Warsaw Stock Exchange, and the sale of Profi, a leading grocery retailer in Romania. These cases highlight MidEuropa's aptitude for positioning fast-growing companies as attractive assets for both strategic buyers and public market investors.

In terms of advisory support for the IPO, Rothschild & Co. served as the Independent Financial Advisor, while Citigroup Global Markets Limited, along with several local banks, acted as joint global coordinators. Legal services were provided by various prestigious law firms, further ensuring a smooth transition to public trading.

MidEuropa has built a robust reputation over its 25 years of operations in Central Europe. With headquarters in London and offices in Warsaw and Bucharest, the company adopts a flexible, pan-European approach to discover winning investments primarily in healthcare, technology, services, and consumer sectors. The firm emphasizes collaboration with diligent founders and management teams to facilitate growth through various strategic methods, including digital transformations and international expansion. To date, MidEuropa has raised and managed funds exceeding €6.5 billion, completing 46 investments and over 270 acquisitions across 20 countries.