Published: March 3, 2014
Shares have fallen by 12% since Friday's listing.
Shares in Lenta, Russia’s second-largest hypermarket chain, have fallen following the company’s IPO on Friday (February 28), which saw it list global depositary receipts in London and Moscow.
Selling shareholders including private-equity firm TPG Capital and the European Bank for Reconstruction and Development (EBRD) sold the depositary receipts, five of which equal one share, for US$10 each, at the low end of a US$9.50-US$11.50 range. The offering raised some US$952mn and valued Lenta at US$4.3bn.
At about 10.30am on Monday the receipts were trading at US$8.80, their lowest since the IPO.
Despite this volatility, the IPO has nonetheless made its mark. According to analysis by research firm Dealogic, Lenta’s offering is the largest retail-sector IPO in London since that of Sports Direct International in February 2007, as well as being the largest ever retail-sector listing from a Russian company.
Dealogic calculates that global IPO volume in the year-to-date has hit a record of US$28.6bn. EMEA issuance of US$8.9bn accounts for a 31% share and is the highest year-to-date level since 2007.
Credit Suisse, JP Morgan and VTB Capital were joint global coordinators and joint bookrunners on Lenta’s transaction. Deutsche Bank and UBS acted as joint bookrunners, with TOG XCapital a co-manager.