Russian IPO Activity Ticks Up

Sebastien Callebaut -

As the global economy improves and fears about new Western sanctions recede, Russian IPO activity is heating up. By the end of the year, the Moscow Exchange aims to have 10 additional listings.

According to reports, real estate database CIAN, vehicle sharing business Delimobil, IT firm Softline, food shop Vkusvill, and the Saint Petersburg Exchange are all planning IPOs.

Car Sharing IPO

Delimobil Holding S.A. filed for an initial public offering in the United States on Friday, revealing that its sales for the first half of this year more than doubled, becoming the latest in a spate of Russian businesses aiming for market debuts.

Delimobil's revenue for the six months ending June 30 was 4.93 billion roubles ($68.6 million), up from 2.25 billion roubles the previous year. Losses fell to 1.07 billion roubles, down from about 2.3 billion roubles a year ago.

  • The firm was formed in 2015 and it currently manages a fleet of approximately 18,000 cars in 11 Russian cities. It originally announced its IPO ambitions in 2019
  • Delimobil has just surpassed its main competitor Yandex.Drive, which is managed by Nasdaq-listed Yandex, as the top participant in Moscow's car-sharing industry
  • According to data from the Moscow transport authority, Delimobil had a 44.2 percent share of the car-sharing market in the Russian city at the beginning of August, compared to Yandex.Drive's 37.7 percent.

IT, Real Estate And Agriculture IPOs

Softline, a Russian IT startup, announced on Monday that the indicative price range for its initial public offering has been established at $7.50 to $10.50 per global depositary receipt, valuing the company at up to $1.93 billion.

  • Through its IPO, Softline wants to raise $400 million by selling newly issued ordinary shares in a London Stock Exchange IPO later this month, with a secondary listing in Moscow

Sources stated on Tuesday that Cian, one of the country's leading real estate databases, is very near to having an IPO in the United States, and named the Nasdaq as the potential venue.

  • Cian's deal might be worth $300-400 million, according to two sources. Sources said last month that the corporation has contacted banks to help with the transaction

According to four sources, food store Vkusvill and the Saint Petersburg Exchange are among the companies preparing to list in the United States. The Wall Street Journal stated on Tuesday that Vkusvill might be worth $3-5 billion and the exchange $2 billion.

  • On Tuesday, three banking sources indicated agriculture company Prodimeks was considering an IPO, with one estimating a $500-$750 million valuation

BENCHMARK'S TAKE

  • Russian companies are boosted by the success of Ozon's IPO and TCS Group Holding's recent run
  • A more positive environment for Russian companies is also being painted as the threat of sanctions recedes and the Rouble stays largely stable versus the U.S. Dollar
  • We're on the lookout for additional targets in Russia

Disclaimer

Please note that this article does not constitute investment advice in any form. This article is not a research report and is not intended to serve as the basis for any investment decision. All investments involve risk and the past performance of a security or financial product does not guarantee future returns. Investors have to conduct their own research before conducting any transaction. There is always the risk of losing parts or all of your money when you invest in securities or other financial products.

Credits

Photo by verdealbastrui on Unsplash.