Russian retailer Dixy Group has confirmed reports that it has scrapped plans to list in London and said more shares would be offered to existing investors.
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The company, which yesterday (28 October) booked a 45% jump in nine-month sales, blamed the financial crisis for its decision.
“We are deferring the placement because of the current market conditions,” a spokesman for Dixy told just-food today.
Shareholders approved an issue of 26 million new shares in August. Reports said the offering would take place in October or November and that Dixy hoped to raise between US$300m and $400m. The company, however, refused to comment.
Instead, Dixy now plans to offer the shares to its existing shareholders., the spokesman said.
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By GlobalData“Existing shareholders will now exercise their pre-emptive rights to buy into the issue,” he added. “They have a couple of weeks to make a decision.”
The results are expected to be announced at the end of November.
During the first nine months of the year, Dixy, which ran 425 stores in Russia at the end of September, saw revenue reach US$1.44bn, a rise of 45%. In rouble terms, sales were up 35%. Like-for-like sales grew by 17%.
Dixy president Vitaliy Klyuchnikov said: “The company continues to develop according to a plan, in spite of the crisis on the financial markets. Before the year-end we intend to open more than 50 new stores, which were financed, for the most part, during the last several months.”
