Russian retailer Lenta values itself at USD 9.5-USD 11.5 per GDR (Global Depository Receipt), the company announced ahead of the road-show for its IPO. With 21% of the charter capital (19mn shares or 95.2mn GDRs) to be offered this translates into USD 4.09bn-USD 4.95bn valuation for the whole company and USD 0.905bn-USD 1.095bn valuation for the offering. The subscription book is planned to be closed by February 27.
Previously, Prime reported that VTB Capital, one of the organisers of an IPO of Lenta values the company at USD 5.291bn-USD 6.185bn. However, analyst surveyed by Prime believed that this was overvalued.
Moody's Investors Service believes that the planned IPO of Russian retailer Lenta is neutral for its rating of B1. The IPO will not result in new equity injection and is not expected to bring any materials changes to shareholder structure. The agency believes that none of the shareholders intend to fully exit the company and no strategic investors are not expected to enter at this stage.
Moody's believes that the IPO is a first step of current shareholders to a full exit expected in three to five years. At the same time thanks to the IPO might further facilitate Lenta's governance transparency and help with access to the equity markets.
Lenta is going to hold an IPO in London to be followed with a listing in Moscow. The amount of the offering will be determined based on demand and market situation. The shares held by TPG investment fund (49.8%), EBRD (21.5%), and VTB Capital Private Equity (11.7%) could be proposed.