By Ilya Khrennikov and Ruth David
Jan. 31 (Bloomberg) – Lenta Ltd., the Russian hypermarket
chain controlled by U.S. leveraged buyout firm TPG Capital, will
disclose its intention to sell shares in an initial public
offering as early as Monday, seeking a valuation of about $5
billion, said two people familiar with the matter.
Lenta will seek to attract investors by promoting itself as
Russia’s most profitable retailer, according to three people,
who declined to be identified because the plans have not yet
been made public. The company will disclose that earnings before
interest, tax, depreciation and amortization as a proportion of
sales were higher than the 11.2 percent margin of market leader
OAO Magnit in 2013, two people said.
Lenta joins Metro AG’s Cash & Carry unit in a busy market
for stock offerings in Russia, which researcher Euromonitor
estimates will be Europe’s biggest retail market by 2018.
Companies are riding the coattails of an economy whose expansion
rate is set to accelerate to 2.5 percent this year from 1.4
percent in 2013, according the Economy Ministry.
Lenta plans to sell shares in London, with a possible
secondary listing in Moscow, two other people familiar with the
matter said earlier this month.
Shareholders including TPG and Russia’s VTB Capital are
seeking to sell about $1 billion of stock, the people said. The
company doesn’t plan to issue new shares, one person said.
Yana Mogileva, a Lenta spokeswoman in St. Petersburg,
declined to comment on the company’s plans.
Lenta is one of the largest retail chains in Russia and the
country’s second-largest hypermarket chain, according the the
company’s Website. Founded in St. Petersburg in 1993, the
company operates 77 hypermarkets in 45 cities across Russia and
10 supermarkets in the Moscow region. It plans to double its
store network in three years.
Metro, Germany’s biggest retailer, confirmed Jan. 20 that
it plans to proceed with a partial IPO of its Russian Cash &
Carry unit in the first half of this year. Detsky Mir, the
country’s largest retailer of children’s goods, selected Credit
Suisse Group AG and JPMorgan Chase & Co. to help it sell shares
later this year, people familiar with the matter have said.
For Related News and Information:
Detsky Mir Said to Join Lenta, Metro in Prepping Russian IPOs
High Heels to Diapers Dominate in Russia’s Surging IPO Market
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--Editors: Paul Jarvis, Celeste Perri
To contact the reporter on this story:
Paul Jarvis in London at +44-20-7673-2346 or
To contact the editor responsible for this story:
Celeste Perri at +31-20-589-8505 or