Page 105 - RusRPTMar21

8.3.3 ECM news
Fix Price, one of the leading variety value retailers globally and the largest in Russia, on February 20 confirmed its intention to proceed with an IPO on the London Stock Exchange in March. The Company today also announces the expected appointment of three independent non-executive directors to the Board of Directors to be formed following completion of the IPO:Alexander Tynkovan, founder and former CEO of leading consumer electronics retailer M.Video; Elena Titova, independent member of the Board of Directors at QIWI Plc; and Gregor Mowat, former CFO of KPMG in Russia and CIS and member of the Board of Directors at Magnit and PIK GROUP.
Key points to note about Fix Price:
● Fix Price is one of the leading variety value retailers globally and the largest in Russia, with more than 4,200 stores currently and revenue of
RUB 190.1 billion (about US$ 2.6 billion), Adjusted EBITDA of RUB
36.8 billion and an Adjusted EBITDA margin of 19.4% in 2020.
● Fix Price believes it is one of the most profitable and fastest growing
retailers when compared to publicly traded variety value retailers globally – a group of peers that includes companies such as Dollar General and Dollar Tree in the US, B&M in the UK, and Dino in Poland. Fix Price had 16 consecutive quarters of double-digit LFL sales growth through the end of 2020.
● Fix Price stores provide an affordable shopping destination, offering customers a broad range of essential and unique products at multiple fixed price points, all under RUB 250 (about US$ 3.40).
● Fix Price pioneered variety value retail in Russia when it opened its first store in 2007. Today variety value retail is one of the fastest-growing segments in Russian retail and is expected to triple in size by 2027 with a CAGR of 16.9% for 2019-2027. While the market has more than doubled over the past five years, it is still at a low base compared to other countries, suggesting further significant potential for growth.
The Russian hard discounter Fix Price should have a valuation of between RUB752bn and RUB854bn ($10.2bn-$11.6bn) after it flotation slated for March, VTB Capital, one of the organizers of the IPO, said as cited by Prime. Fix Price plans to hold an IPO in London and get a secondary listing on the Moscow Exchange. The company will list global depositary receipts (GDRs) on the LSE. The Moscow Exchange has already admitted the stock for trade on February 20, but they are not available to investors yet.
A potential SPO will be discussed at Etalon’s EGM on 22 March. At its EGM this month, the company will decide on the approval of an increase in
105 RUSSIA Country Report March 2021 www.intellinews.com