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

Russia’s central bank reduces key rate in surprise decision

The Central Bank of Russia (CBR) reduced the key lending rate by 0.25 percentage points to 9.75% on March 24, despite broad market expectations of no change this month. The ruble strengthened to a ... more

Ex-Trump aide Manafort reported to be long-term Putin lobbyist

Paul Manafort, US President Donald Trump's former election campaign manager, struck a covert deal with Kremlin-affiliated Russian oligarch Oleg Deripaska in 2006 to promote the interests of President ... more

Russian central bank governor Nabiullina to be nominated for further five-year term

The governor of the Central Bank of Russia (CBR), Elvira Nabiullina, will be nominated for another five-year term, President Vladimir Putin told the country’s top banker on March 22. The nomination ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss