Russia’s Lenta says considers floating shares in SPO

MOSCOW, Mar 18 (PRIME) -- Russian retailer Lenta is considering a secondary public share offer, it said in a presentation on Thursday.

The company’s core shareholder is Severgroup owned by Alexei Mordashov with 77.99%.

Lenta said it plans to double revenue to 1 trillion rubles by 2025.

"Lenta plans to reach the following four targets:  growth -- doubling revenue to 1 trillion rubles by 2025; return -- keeping the position of Russia’s most profitable retailer; competitiveness -- to become number 1 or number 2 player in the markets or segments of Lenta’s presence; return to lead in the sector of total shareholder return (TSR) by 2025," the statement read.

The retailer plans to maintain the earnings before interest, taxes, depreciation and amortization (EBITDA) margin above 8%. Online sales can rise by 10% by 2025.

Lenta plans to allocate up to 5% of the sales profit to capital expenditures in 2021.

The company is considering holding a secondary public offering (SPO), according to the presentation.

(73.1019 – U.S. $1)

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