Moscow Exchange chosen as IPO floor by major footwear retailer

By Andrei Skvarsky.

Moscow Exchange is soon going to host one more IPO, with major Russian footwear retailer Obuv Rossii planning to put one quarter of its stock on sale and expecting to raise between 1.5bn and 2bn rubles ($46m-$62m) thereby.

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The planned sale would be run by a consortium led by Russian broker and asset manager Alor. The other underwriters are yet to be selected, Obuv Rossii said in a statement.

There is a tendency for Russian companies to choose Moscow Exchange as the floor for selling their shares, the top management of the bourse say.

Alrosa, Russia’s top diamond producer, celebrated a successful sale of a 16% stake through an IPO on Moscow Exchange recently, and last winter the bourse itself raised about $500m via a triumphant IPO.

Obuv Rossii is a booming business whose revenue and net profit surged by 61% and 58.6% respectively between September 2012 and September 2013.

The company plans to put its IPO yield into boosting its network of shops to over 650 from today’s more than 250 within the next five years.

“The Russian footwear market is characterized by a low level of consolidation and remarkable potential for growth, both of which the Company intends to utilize for its growth,” Obuv Rossii said in its statement.

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