Retail investors will be able to buy around 15% of the retailer’s shares.
Russian wholesaler chain Azbuka Vkusa is considering a possible initial public offering (IPO) on the Moscow Exchange. Company president Denis Sologub shared this in an interview with RBC.
The company can raise up to 15% of its capital for an IPO, Sologub said. According to chain reporting data, the authorized capital of the company as of September 30, 2021 is 310 million rubles. Deriving from this, the possible volume of attraction can reach 46.5 million rubles. According to him, it is possible to enter the stock exchange “in the near future”.
Azbuka Vkusa needed new funds to develop its foodtech business, expand production, and grow new segments and services. In particular, the retailer is targeting the food and health sector that is concerned. Raising funds from the market for this purpose is more convenient for companies, compared to credit, Solobub explained to RBC.
Retail clients can become investors, says head Azbuka Vkusa. According to him, the demand for company shares could be “very high”.
“The core of our loyal audience of 90 percent coincides with the high number of active investors with checks,” Sologub explained to the portal.
It is noteworthy that at the end of 2020, the head of the network said in an interview with Forbes that the company did not see the need to go public. The status of a private company allows implementation of the initiative with delayed profits, Sologub noted later. According to him, investors in the stock exchange “demand immediate profits, this often complicates the work.”
“In foodtech we have great potential, because ready-to-use food of the highest quality, as well as on an industrial scale, is now available only in Russia,” said chairman Azbuka Vkusa.
Let us remind you that in June this year, the media reported that the supermarket chain “Azbuka Vkusa” was planning to acquire “Yandex”. According to sources, the Internet company wants to use retailers to expand its own food delivery service business Yandex.Lavka. However, in August, the media reported that Yandex had rejected the deal.
Rumors about the deal were not without reason, comments RKB Sologub. In addition to the founders, network owners are also institutional investors who expect returns on their investments. However, the chain’s founders will not sell their shares, the head of the company said. According to him, the fund is “satisfied with how the company is developing and how its stability is growing.”
The two companies continue to cooperate in the food delivery sector. According to Sologub, since November the retailer has suspended its own express delivery service and shifted customers to the Yandex.Eda project.
The head of the company expects that by the end of the fiscal year in March 2022, network revenues will reach 80 billion rubles, and the share of shipments will be 7.5% According to the company, during the 9 months of 2021, revenues have increased by 1.8% compared to the same period last year. ago and amounted to 55.2 billion rubles. At the same time, online sales channel growth grew by 119%, according to retailers.
Read also: by 2022, more than a dozen Russian companies could go public with IPOs, according to Reuters.