STS Holding ownership eyeing up future investments following Warsaw IPO

 STS Holding SA‘s owners, the Juroszek family, are reportedly planning on making stock purchases and launching an investment arm, according to Bloomberg. 

By selling 30% of shares in STS, Poland’s largest sports betting operator, ownership were able to raise 1.08 billion zloty (€235.5m). STS is currently on track to begin trading on the Warsaw Stock Exchange later this week, with the Friday 10 December marking the opening day.

Bloomberg has now reported that Mateusz Juroszek, STS CEO, now aims to create an ‘investment vehicle’ to purchase stakes in high-dividend paying WSE-listed firms.

A potential target of the businessman’s investment ambitions is e-commerce platform Allegro.eu.SA, which is the largest such enterprise in Poland and has been described by Juroszek as a core part of the country’s internet culture.

Speaking to the outlet, the CEO remarked: “We want to invest strongly on the Warsaw Stock Exchange because we believe in good prospects for the Polish economy and local stocks.”

In addition to STS, the Juroszek family – having disclosed plans to list STS on the WSE earlier this year – also hold 10% stakes in asset management firms Quercus TFI SA and Skarbiec Holding SA.

Meanwhile, STS also maintains a 74% stake in Czech technology company Betsys – the largest IT provider to the Polish betting nad gaming market – acquired in 2020.

However, Bloomberg has detailed that Juroszek could also focus on the rapidly expanding US market, having already secured stakes in major companies operating in the space such as Flutter Entertainment and Better Collective, whilst STS will continue its focus on the CEE region.

“For STS we look for targets in central and eastern Europe, but we don’t have anything precise on the radar, as we have a selective and steady approach,” the CEO added.

Despite being the market leader in Poland with a 2020 market share of 46%, STS continues to lag behind larger multinational gambling firms with regards to investments, with Bloomberg outlining that the aforementioned Flutter Entertainment currently invests $23.3 billion as opposed to STS’ $0.9 billion.

The family’s investment ambitions, however, could take some time to reach fruition, as Juroszek confirmed that it may take up to five-years to establish a strong investment arm, using the 1.08 billion zloty as well as funds from the family’s Atal SA home building business.