Russian retailer O'Key, which is planning to list in London, is facing an oversubscribed order book for its IPO, just-food understands.

O'Key, the third-largest domestic food retailer in Russia by sales, has priced its share offer at US$9.90 to $12.90 a share. The order book will close on Monday (1 November).

The retailer is placing 38.4m shares on the market, which could raise the retailer $491m. O'Key has also granted the bookrunners of the IPO - Goldman Sachs and VTB Capital - the ability to by 3.8m extra shares to cover any over-allotment.

O'Key wants to use the funds raised to expand its hypermarket and supermarket chain in Russia. At the end of June, O'Key operated 52 stores - 32 hypermarkets and 20 supermarkets. The retailer's 2009 revenues stood at RUB67.9bn.