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April 12, 2019 www.intellinews.com I Page 4
Russia's Sistema investment major expects good IPOs
of second-tier assets
"You saw the results of Steppe and Segezha, you saw how fast they are growing. Previously we thought that IPOs of Segezha or Steppe in two
to three years may be close to what we had with Detsky Mir, but now we think that these IPOs may be more successful that the one of Detsky Mir," Duboskov said as cited by Prime, referring to the IPO of children's good retailer Detsky Mir.
Duboskov argues that margins and potential upside are higher in the agricultural and timber industries than in the retail. However, he did not provide any clear timeline for the possible IPO.
Sistema also said this month that it plans to IPO its pharmaceutical asset OBL Pharm (Obolenskoye) that was merged with Binnophafm, without providing the timeline for the initial public offering.
Sistema acquired 11.7% in OBL Pharma in December 2018 for RUB1.83bn, jointly with
a consortium of VTB Bank and OBL Pharm's management buying 95.14% in the company
for RUB15.5bn. Sistema planned to merge the asset with Binnopharm in which it holds 74% to "significantly improve the value of the business."