View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. News
February 14, 2014

RUSSIA: Hypermarket retailer Lenta sets IPO price

Russian retailer Lenta has published the price range for its offering of shares in London and Moscow.

By Dean Best

Russian retailer Lenta has published the price range for its offering of shares in London and Moscow.

The hypermarket operator said the range had been set at US$9.50-11.50 per global depositary receipt. Five GDRs is worth a share.

The range implies Lenta’s market capitalisation at the start of dealings will be US$4.09-4.95bn. 

That capitalisation equates to an enterprise value of US$5.2-6.1bn, using Lenta’s net debt at the end of 2013 and a USD/RUB exchange rate of 34.86 today (14 February).

The offering will see Lenta investors, which include private-equity groups TPG Capital and VTB Capital Private Equity, sell 22.1% of the retailer’s existing share capital.

At present, TPG owns 49.8% of Lenta, with VTB holding 11.7%. The European Bank for Reconstruction and Development (EBRD) owns 21.5%, with other minority investors holding the rest.

CEO Jan Dunning said: “The strength of our positioning and the ongoing support provided by a world-class group of investors leaves us very well positioned to capture the significant growth potential in the fragmented and underpenetrated Russian food retail market.”

Lenta has 77 hypermarkets in 45 cities across Russia, plus ten supermarkets in and around Moscow. The retailer has said it is the second-largest hypermarket operator in Russia and has plans to expand further.

Related Companies

Topics in this article: ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU