Russian retailer O’Key is planning to list in London by the end of the year to raise cash to expand its hypermarket and supermarket chains.

O’Key said today (5 October) it wanted to launch a global offering of ordinary shares in the form of global depository receipts (GDR). One GDR would represent an interest in one ordinary share.

CEO Patrick Longuet said the plans for a listing was a “milestone in the company’s development”.

“There continues to be substantial under-penetration of modern retail throughout Russia and we believe we have the right business model and customer value proposition to capitalise on the growth opportunity,” Longuet said. “The funds raised from the IPO will help us to grow the business further as we look to continue to replicate the considerable success we have achieved in St Petersburg in other major cities across Russia.”

O’Key said it was Russia’s third-largest food retailer in terms of revenue in 2009. As of the end of June this year, the retailer ran 52 stores – 32 hypermarkets and 20 supermarkets – in Russia.