Children’s goods retailer Detsky Mir to offer 33.55% in IPO

Detsky Mir set price range for initial public offering at between RUB 85 and RUB 105 per share

26 January 14:35 2017 by Anastasia Print This Article

The owners of Russian children’s goods retailer Detsky Mir (Sistema and other shareholders) will offer 247.9 million shares during an IPO in Moscow, which is about 33.55% of its capital, set at between RUB 85 and RUB 105 per share, multi-industry holding Sistema said in a statement on Thursday.

It is expected that the selling shareholders will sell up to 247.9 million shares (including an option of additional placement), which in the framework of the price range corresponds to an offering amount of about RUB 21.1 billion to RUB 26 billion, valuing the company at between RUB 62.8 billion and RUB 77.6 billion rubles, the statement reads.

Besides Sistema, which holds the controlling stake, the selling shareholders include the Russia-China Investment Fund (RCIF), acting through investment companies Floette Holdings Limited and Exarzo Holdings Limited, and several individual shareholders, such as executives of Detsky Mir and Sistema.

Detsky Mir is one of the largest specialised children’s goods retailer in Russia, with product portfolio comprising toys, products for newborns, fashion (apparel and footwear), large items, and other products. According to Ipsos Comcon, in 2015, Detsky Mir had an estimated share of 32% (24% in 2014) of the specialised children’s goods retail market in Russia and 13% (10% in 2014) of the total market for children’s goods in Russia (including hyper- and supermarkets). As of Dec. 31,  2016, Detsky Mir operated a network of 525 stores, comprising 468 stores in Russia and 12 stores in Kazakhstan operating under the “Detsky mir” brand and 45 ELC stores in Russia.

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