By Andrei Skvarsky.
Credit Suisse, Goldman Sachs, Morgan Stanley, UBS and Sberbank will oversee an initial public offering of ordinary shares announced on January 16 by Detsky Mir, Russia’s iconic, largest and booming goods retailer for children.
Credit Suisse, Goldman Sachs and Morgan Stanley will be the global coordinators and joint book runners for the IPO, to take place on Moscow Exchange. UBS Investment Bank and Sberbank CIB, the investment arm of Sberbank, which is Russia’s biggest lender, will be co-book runners.
Russian conglomerate Sistema plans to retain its majority stake in Detsky Mir and its “strategic control” of the company in the medium term, Detsky Mir and London-headquartered financial and corporate communications agency EM said in a joint statement.
Detsky Mir, set up in 1947, runs 525 stores in Russia and Kazakhstan and plans to open another 250 by 2020. It has a market share three times that of its nearest competitor, and has had revenues that have yearly been growing by about 30 per cent over the last several years.
One of Detsky Mir’s principal stakeholders is the Russia-China Investment Fund.
“Russia was the best-performing major equity market in the world in 2016, with the benchmark RTS Index rising 52.6%,” EM said.
The RTS Index is a free-float capitalisation-weighted index of 50 Russian stocks traded on Moscow Exchange and calculated in US dollars. It derives its name from the Russian Trading System, a former stock exchange.