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April 26, 2019 www.intellinews.com I Page 2
Russian fast food operator Burger Rus plans IPO
However, the SPO by meat major Cherkizovo failed, as reported by bne IntelliNews.
Fast food was the fastest growing segment of the Russian catering market in 2018, expanding by 13% year-on-year to RUB1.52 trillion ($23.8bn), and taking almost 50% of the market. The fast food segment is growing fastest in Russia’s far-flung regions, due to lower incomes of the consumers.
Analysts surveyed by Vedomosti believe that Burger Rus is an attractive asset, but perhaps too small for an IPO, with estimated revenues of little over RUB50bn ($784mn) in 2019 and a valuation of about RUB34-37bn. But the catering market
is underrepresented on the equity market, which could raise investor interest.
The franchisee of Burger King in Russia is 100% owned by Cyprus-based Burger King Russia, con- trolled by VTB Capital (acquired 48.8% stake in 2012 for $50mn), and Xomeric Holding (20%, re- portedly affiliated with Ukrainian bankers Makar Pasenyuk and Konstantin Stetsenko). The chain operates 550 Burger King restaurants in Russia.
Previously DP Eurasia, that operates the Dom- ino’s Pizza brand in Turkey, Russia, Azerbaijan and Georgia, IPO’d in London in 2017 raising GBP148mn by placing 74.1mn existing and new ordinary shares with investors at a placing price of 200 pence per share. DP Eurasia’s market capital- isation on admission, based on the placing price, is approximately £291mn.
Founded in Turkey in 1996, DP Eurasia is the largest pizza delivery company in Turkey, the third largest in Russia and the fifth largest franchisee within the global Domino’s Pizza brand.
Russian Market Data Value
1M YTD
Equity Indices
RTSI
1,246
1%
17%
MOEX
2,561
3%
8%
MSCI EM
1,077
3%
12%
S&P
2,926
5%
18%
NASDAQ
8,119
6%
23%
DAX
12,283
8%
16%
FTSE
7,434
4%
10%
Commodities
Price, $
1M YTD
Brent
74.3
10%
37%
WTI
65.1
11%
43%
Urals
74.2
-4%
65%
Gold
1,277
-3%
0%
Silver
14.9
-4%
-4%
Nickel
12,265
-4%
16%
Copper
6,375
1%
7%
Aluminum
1,851
0%
-1%
FOREX
Value
Russia sectors performance % YTD
1M YTD
EUR/RUB
71.98
-1%
-9%
Russia sectors performance % YTD
Oil & Gas Utilities Financials Consumers Telecoms M&M RTS MOEX
12
18
19 15
14
16.5
10
8.0
0 5 10 15 20 25
Source: MOEX, BCS GM
source: MOEX, BCS GM
Sectors: % return YTD