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bne November 2020 Companies & Markets I 15
The potential valuation range indicated in the article implies a 2019 EV/gross merchandise value (GMV) of 2.9-4.9x and 2020E EV/GMV multiples of 1.5x-2.4x if one assumes that Ozon’s GMV grows 100% y/y this year, Sova estimates.
OZON’s GMV was up 115% y/y in 1Q20 and 188% y/y in 2Q20, and it kept growing by more than 100% y/y in July and August, according to Sistema.
Russian online retailers received an additional boost from the lockdown environment on the back of the coronavirus (COVID-19) outbreak this year.
According to Data Insight, the Russian e-commerce market will expand 44% y/y in 2020 to RUB2.5 trillion ($31.8bn),
RUB300bn of which is due to incremental gains associated with COVID-19. This effect is likely to be a long-lasting one due to the inflow of new customers into online retail, the bulk of which will likely keep shopping online, increasing the frequency of orders and the rapid development of e-grocery services.
“The Russian e-commerce market could grow by a 2020-24E compound average growth rate (CAGR) of 33% to over RUB7 trillion in 2024E,” says Sova Capital. “We think that OZON, being the second largest multi-category e-retailer in Russia, is well positioned to benefit from these trends due to its rapid marketplace development (already over 50% in GMV reached in June) and the expansion of its logistics and fulfilment capabilities.”
Russian residential real estate group Samolet Group to IPO on MOEX as mortgage subsidy programme drives Russia’s real estate growth
Ben Aris in Berlin
Up-and-coming Russian residential real estate group Samolet Group announced that it will list its shares on the Moscow Exchange (MOEX) with an IPO, the company announced on October 15.
The existing shareholders will offer circa 5.1% of the company shares to investors. The offer is lead by Samolet’s principle shareholder Pavel Golubkov and he will offer, together with his fellow shareholder, stakes of 1%, 0.5% and 3.6% from their respective holdings.
The offer has already been registered the placement via
open subscription with the Central Bank of Russia (CBR). The money raised will be used to buy new land plots and fund the ongoing construction business, the company said in a statement.
The Russian state-owned bank VTB Capital is acting as sole global coordinator and joint bookrunner for the offering, with BCS Global Markets as joint bookrunner.
Anton Elistratov, CEO of Samolet Group, said: “Ever since we established Samolet Group, we have developed the company with the intention of becoming a public company. Within the partner- ship business model, which is not typical for the Russian market, there is an expectation of transparency for partners not only regarding joint projects but also at the level of the company as a whole. Samolet has therefore since its very beginning adhered to the standards expected of a public company in its corporate governance and the development of its business processes.”
The IPO expands the universe of listed real estate developers, which has been a popular sector with equity investors thanks to its dynamic growth, good corporate governance and generous dividends. The other players are lead by PIK and also include LSR Group (LSR) and Etalon make up the majors in the sector.
Samolet has the largest private land bank among its peer group, which is a key factor in the company’s consistent delivery of outstanding results, according to Elistratov.
“That enables us to set ambitious goals for our future growth. The company, as well as its existing and new shareholders,
is ideally positioned to make a qualitative breakthrough in
its financial performance and to further increase its market
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