Lenta, Russia’s second largest supermarket chain, has become the latest retailer to announce its intention to float on the London Stock Exchange.
The company has 77 hypermarkets in 45 cities across Russia, as well as 10 supermarkets in Moscow. It also has five distribution centres.
Its three major selling shareholders are TPG, which holds a 49.8% stake; the European Bank for Reconstruction and Development, which holds a 21.5% stake; and VTB Capital Private Equity, which holds an 11.7% stake.
Management and directors own 1% and other minority shareholders 15.9%.
“Our proposed offering represents a major milestone for us and comes at an exciting time in Lenta’s development,” said CEO Jan Dunning.
“Our business model and flexible store formats have a proven ability to capture the growth potential in the Russian food retail market, and Lenta is now pushing ahead with a programme of store rollout across Russia. We now plan to double our selling space over the next three years.”
In 2013, Lenta reported a 31.3% increase in sales to RUB144.3bn and EBITDA up 28.9% to RUB16.4bn. It also opened 21 hypermarkets, two new distribution centres and 10 supermarkets.
The float is expected to take place next month. Reports suggest the company could be valued at £3bn.
Lenta’s plans come hot on the heels of McColl’s Retail Group, which last week confirmed its intention to float.
A string of other retailers are also understood to be planning listings this year, including Poundland, B&M Retail, Fat Face, Pets at Home and AO.com.
Read this: Will flotation help McColl’s hit its 1,000 c-store target?
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