UPDATE2: Russia’s Detsky Mir sells shares at 85 rbl/shr at IPO

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MOSCOW, Feb 8 (PRIME) -- Russia’s largest children goods retailer Detsky Mir has sold shares during its initial public offering (IPO) at 85 rubles per share, the volume of the placement amounts to 21.1 billion rubles with the full option exercise, the company said in a statement Wednesday.

The bid book closed on Tuesday, trading of the shares on the Moscow Exchange will start on Friday.

Multi-industry holding Sistema sold 19.63% in the company with a possibility to exercise an option to boost the sold stake to 22.57%, the Russia–China Investment Fund’s (RCIF) sold 8.7% with an option to raise the sold stake to 10%.

RCIF, created by the Russian Direct Investment Fund (RDIF) and China Investment Corporation, does not plan to sell its remaining shares in Detsky Mir in the near future, but could sell them over the next three to five years, RDIF CEO Kirill Dmitriev said at a news conference.

“We have saved the major part of our stake, we do not plan to sell it in the near future. We believe in the company’s growth, think that it is an important example of a Russian company, which is showing such unique pace of growth even in such a difficult economic situation,” he said.

Before the IPO, Sistema held 72.6% in Detsky Mir and RCIF held 23.1%.

Around 90% of the placed shares were purchased by foreign investors, Sberbank CIB Managing Director Anton Malkov told PRIME. Over 80 investors took part in the deal, he said, adding that the biggest interest in Detsky Mir shares was shown by investors from the U.S. and the U.K.

In January, Detsky Mir said that Sistema and other shareholders will float up to 247.9 million shares of the company, which account for 33.55% of Detsky Mir’s capital.

The price guidance initially stood at 85–105 rubles per share and was narrowed to 85–90 rubles per share on Monday and to 85–87 rubles per share on Tuesday.

Credit Suisse, Goldman Sachs, Morgan Stanley, Sberbank CIB and UBS act as organizers.

(59.1933 rubles – U.S. $1)

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