Russia's Detsky Mir children's retailer announces IPO

By bne IntelliNews January 16, 2017

Russian retailer of children’s goods Detsky Mir announced plans to offer 30% of its shares in an IPO, TASS reported on January 16.

The retailer’s main shareholder, AFK Sistema multi-industry conglomerate, which currently owns a 72.63% share in Detsky Mir (Children's World), will keep a controlling stake. Another 23.1% is currently owned by the Russian-Chinese Investment Fund, 1.79% by general director Vladimir Chirakhov, and 2.48% by the management.

Goldman Sachs, Credit Suisse and Morgan Stanley will be coordinators and bookrunners of the IPO, while Russia’s UBS and Sberbank CIB will also be bookrunners.

Only existing shares of the retailer will be offered in the IPO, which Sistema head Vladimir Yevtushenkov said in October will take place in Russia or Britain in March 2017.

Detsky Mir runs 480 retail outlets in 171 cities of Russia and Kazakhstan and also develops a retail chain under the name ELC, which currently has 45 outlets for a total of 525 stores. 

In 2016, Detsky Mir opened 100 stores. The company saw its net income soar by 70% year-on-year to RUB600mn ($9mn) and gross profits were up by a third (32%) to RUB11.2bn (160mn) in January-June 2016, bucking the trend of contracting retail sales.

Related Articles

E-commerce tie up between Russia Sberbank and China's Alibaba collapses

Russian state-owned retail bank Sberbank's planned joint venture with China’s top e-commerce group Alibaba has collapsed after over a year of talks, people familiar with the situation have told the ... more

Russia said to offer Turkey partial financing for S-400 anti-aircraft missile system purchase

Russia is to offer Turkey partial financing for Ankara’s acquisition of S-400 surface-to-air missile systems, Interfax news agency quoted a Russian presidential aide as saying on December 12. ... more

UAZ to start assembling cars in Kazakhstan

Russian automaker UAZ, part of Ford Sollers, will begin assembly of its SUVs and LCVs in Kazakhstan in the second quarter of 2018, the company ... more

Dismiss