Russian retailer O’Key Group has announced details of its planned IPO in London.
O’Key said today (19 October) that the global depositary receipts (GDRs) will represent an interest in one ordinary share to be admitted to the official list and to trading on the London Stock Exchange’s main market for listed securities through its international order book.
The offer price range has been set from US$9.90 to US$12.90 per GDR. This implies a pre-money equity value of approximately $2.51bn to $3.26bn (equivalent to market capitalisation of $2.66bn to $3.46bn.
The base offering size is expected to comprise of an offer for sale of up to 38.1m ordinary shares in the form of GDRs, including 15.2m ordinary shares by the company, 6.1m ordinary shares by Barleypark, 12.1m ordinary shares by Brookvalley Ltd and 4.7m ordinary shares by Caraden Ltd.
In addition, O’Key has granted the joint bookrunners an option to acquire 3.8m additional ordinary shares to cover over-allotments in connection with the offering.
The company intends to use net proceeds from the offering to finance the further expansion of its hypermarket and supermarket footprint in Russia over the next several years and for general corporate purposes.
It said it may also temporarily use a portion of the net proceeds to reduce its outstanding short-term indebtedness, which would be drawn upon again as needed to fund its expansion strategy.
O’Keu CEO Patrick Longuet said: “From our base in St Petersburg, we have already achieved a leading position in the Russian retail market and have become one of the most profitable food retailers in the country today. The IPO is an important step forward for us, as it will provide a strong platform for the continued profitable growth of our business throughout Russia.”