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The company has just been to London to road show the IPO and was met with a positive sentiment by investors, the company said, who “noted the company’s equity story and the professionalism of the management team,” as well as the growth prospects for modern retail formats and the company’s e-commerce strategy in the Belarusian grocery retail market.
Income has been rising steadily in Belarus which has been the fastest growing economy in Eastern Europe, partly lifted by Russia’s ongoing economic recovery, the country’s most important trade partner. The supermarket business has been a winner and portfolio investor’s favourite in other countries of the region making the Eurotorg offering very interesting to potential investors. The rising incomes are creating a middle class in Belarus and supermarket are the first beneficiaries of this development.
“Eurotorg plans to revisit its IPO plans as soon as market conditions become more conducive to achieving a valuation that reflects the company’s true potential. In the meantime, the Company’s strong free cash flows will allow it to continue executing on its growth strategy,” the company said.
The company was in London last July where it raise some $350mn in a bond placement to refinance bank debt and create investment capital for its expansion.
2.3 IMF warns Minsk to have a ‘Plan B’ in case energy talks wtih Russia fail
The International Monetary Fund (IMF) has warned the government of cash-strapped Belarus to be prepared "contingency plans" if energy negotiations with Russia fail.
"Although the government sees a low probability of less than full compensation for the tax manoeuvre losses, contingency plans would be helpful if such an event were to materialise," the IMF said in a statement e-mailed to bne IntelliNews o n November 28.
According to the multinational lender, in such an event, oil refining activity would be reduced, dampening export revenue and growth. Tax revenues would also be hit due to lower economic activity, lower transfers from Russia, and lower customs duties.
The policy response should aim to mitigate the impact on the balance of payments and facilitate the reallocation of resources in the economy, including structural reforms. "The loss of energy discounts would underscore the need for faster and deeper reform to boost productivity in SOEs, not least in the refineries," the statement reads.
Meanwhile, the IMF believes that exchange rate flexibility to allow the needed adjustment in the balance of payments, supported by fiscal discipline to refrain from untargeted and costly subsidies to the refineries, and with additional measures as needed to maintain debt in a downward trajectory.
At the top of that, tighter monetary policy to maintain inflation within target and limit undue volatility in the foreign exchange market, the multinational lender added.
The statement followed little progress in Belarus-Russia oil and gas negotiations. Minsk and Moscow seek to secure energy deal by December 15.
7 BELARUS Country Report December 2018 www.intellinews.com