TPG-Backed Lenta’s IPO Price Range Values It Below $5 Billion

Lenta Ltd., the Russian hypermarket chain, announced an indicative price range for its London IPO which would give the company a market value $4.09 billion and $4.95 billion.

The retailer’s owners including U.S. leveraged buyout fund TPG Capital, the European Bank for Reconstruction and Development and VTB Capital will offer about 22 percent of the company’s share capital at $9.50 to $11.50 per global depositary receipt, five of which will represent an interest in one share, Lenta said in a statement today. The joint bookrunners will be granted a 15 percent over-allotment option.

Lenta, registered in the British Virgin Islands and headquartered in St. Petersburg, is seeking to list at a time when appetite for riskier developing-nation assets has soured as the Federal Reserve reduces monetary stimulus. The Russian economy has also slowed down, threatening retailers.

The company’s sales added 31 percent last year, while the margin on earnings before interest, taxes, depreciation and amortization was 11.4 percent, beating that of Russia’s largest retailer OAO Magnit. (MGNT)

Lenta has 77 warehouse-sized hypermarkets and 10 supermarkets in 45 Russian cities. It is seeking to double selling space in three years.

JPMorgan Chase & Co., Credit Suisse, VTB Capital, Deutsche Bank AG, UBS AG and TPG Capital BD are managing the sale.

To contact the reporter on this story: Ilya Khrennikov in Moscow at

To contact the editor responsible for this story: Kenneth Wong at

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