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bne October 2021 Cover story I 33
LONDON
Completed
Fix Price
Dual listing in London and Moscow
The biggest player in the Russian discount retail market in March conducted the largest retail IPO in Russia, raising $1.8bn and listing shares in Moscow and London. The offering valued the company at about $8.3bn and resulted in a free float of 21%. The company is the dominant player in the so-called dollar-store market with a share of about 93% and plans to further expand its retail network three-fold by 2025. Fix Price has 4,700 own and franchise outlets throughout Russia, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Latvia and Uzbekistan, according to its website. The company in August said first-half revenue surged 28% to RUB106.1bn ($1.5bn), with like-for-like sales rising 12% over the period. The business model’s resilience and flexibility helped to achieve strong results amid a complex trading environment caused by macroeconomic headwinds, CEO Dmitry Kirsanov said in the earnings statement on August 12.
Planned
Softline Group
Dual listing in London and Moscow
A Russian provider of information technology solutions with a focus on digital transformation, cloud and cybersecurity boosted revenue by 9% to $1.8bn last
year (in 2020), according to its website. The company, founded by Chairman Igor Borovikov, is headquartered in London and generates more than two thirds of its revenue from cloud services, hardware solutions and software subscriptions provided to clients in 55 countries across Europe, central Asia, Latin America and Asia-Pacific regions. Softline boosted the share of sales outside Russia to 45% of total in 2020 both via organic growth and mergers & acquisitions. On September 30 the company confirmed it intends to list in London and Moscow in the nearest future.
MOSCOW
Completed
European Medical Center
A Russian network of premium healthcare clinics in
July raised $500mn in an IPO, the first one in the Russian private medical services industry in almost
10 years. Despite the industry’s low visibility to investors and traditionally slow business activity during the summer season, the offering saw high demand, including from retail investors, valuing the company at about $1.13bn and giving it a free float of 44%. EMC boasts
one of the highest Ebitda margins among publicly traded companies in the industry globally, with adjusted Ebitda jumping 52% to EU56.1mn in the first six months of
this year, on Ebitda margin of 42%, up from 32% a year earlier, the parent company United Medical Group CY Plc reported August 30.
Samolet Group
One of the leading developers in Russia with the largest land bank in the sector in October raised $40mn in an IPO that valued that company at about $720mn, with a free float of 5.1%. Samolet’s IPO was the first among private
companies in Russia since 2017 and the first one in the country’s sector in nearly 10 years. In less than a year since the IPO, the Company’s capitalisation has increased more than fivefold to over $4.1bn.
Segezha
Tapping Russia’s Green Gold, wood products company Segezha Group completed its IPO on MOEX in April, raising slightly over $400mn. The deal, which gave Segezha a free float of 24%, valued the company at around $1.7b. Its current freefloat is 31% and it remains majority- owned by Sistema, Vladimir Yevtushenko’s London-listed conglomerate. Unlike many of its peers in the paper and wood products sector, the company controls its own forest resources and holds long-term leases on Russian forest land the size of Austria. It also benefits from a cost base in rubles, while the majority of its sales are in euros and US dollars.
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