RUSSIA: Retailer Lenta makes listing debut
Lenta looking to expand in Russia
Shares in Russian retailer Lenta started trading in London and Moscow today (28 February), with the global depository receipts hovering around the offer price.
At 11:42 GMT, the receipts stood at US$9.82 in London, down from the $10 at which they were offered. According to London Stock Exchange data, the receipts reached a high of $10.19 this morning but had fallen at one stage to $9.70.
Lenta, which has 77 hypermarkets and 10 supermarkets across Russia, said it had raised US$952m from the IPO. If an over-allotment option on the shares is taken up, the size of the IPO will increase to $1.1bn.
CEO Jan Dunning said Lenta was "delighted with the enthusiastic response" to the offer.
He added: "The level of growth in Lenta's distinctive, price-led hypermarket model demonstrates that we are well positioned to capture the significant growth potential in the fragmented and underpenetrated Russian food retail market. This growth proposition, which is being led by a very experienced international management team and a group of world-class international investors, has played a major role in generating significant investor interest in Lenta and its offering."
Lenta's existing shareholders - including private-equity firms TPG Capital, VTB Capital Private Equity, The European Bank for Reconstruction and Development - have contributed parts of their stakes to the IPO.
TPG will retain a 38.7% stake in Lenta. The EBRD will hold 16.7% of the retailer. VTB will own 9.1%.
Grocery retailers began to develop in Russia much earlier than other retailing channels. Grocery retailers in Russia has historically been a highly fragmented channel in which a high number of small i...
- How Danone aims to meet its 2020 objectives
- Greencore's food-to-go focus paying dividends
- Mars rice policy more than crop-ticking exercise
- Interview: Ritter sees growth potential in US, EU
- Will Belvita win at breakfast in China? - analysis
- Pinnacle to buy Boulder Brands in $975m deal
- Genius Foods buys UK gluten-free firm Chapel Foods
- Maple Leaf Foods to cut over 400 jobs
- Nestle combats Thai seafood supply forced labour
- Greencore profits lifted by on-the-go food focus