Russian retailer prices IPO

Russian retailer prices IPO

Published: February 14, 2014

Russian hypermarket chain sets price at US$9.50-11.50 per global depository receipt.

Lenta, Russia’s second-largest hypermarket chain, has announced the price range for its upcoming global depository receipt (GDR) listing on the London and Moscow stock exchanges.

The indicative range has been set at between US$9.50 and US$11.50 per GDR, with five GDRs representing one share. The offering will consist of the sale of 95,238,095 GDRs, representing 22.1% of the company’s share capital, by existing shareholders. The selling shareholders are then expected to participate in the offering pro rata to their existing holdings.

Selling shareholders are TPG, which owns 49.8% of existing shares, the European Bank for Reconstruction and Development (21.5%), VTB Capital Private Equity (11.7%) and other minority shareholders which account for a combined 15.9%.

The indicative price range implies market capitalisation of between US$4.09bn and US$4.95bn. The roadshow commences today (Friday 14) and will finish on February 27.
Credit Suisse, JP Morgan and VTB Capital are joint global coordinators and joint bookrunners; Deutsche Bank and UBS are joint bookrunners, and TOG XCapital is a co-manager.