DETSKY MIR ANNOUNCES PRICE RANGE FOR INITIAL PUBLIC OFFERING
(Thomson Reuters ONE) -
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or an exemption from registration under the U.S. Securities Act of 1933, as
amended. PJSC Detsky mir does not intend to register any portion of the offering
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DETSKY MIR ANNOUNCES PRICE RANGE FOR INITIAL PUBLIC OFFERING
Moscow, Russia - 26 January 2017. Public Joint Stock Company "Detsky mir" (the
"Company" and, together with its subsidiaries, the "Group" or "Detsky Mir"),
Russia's largest specialised children's goods retailer, today announces the
price range for its initial public offering (the "Offering") of ordinary shares
(the "Shares"). This follows the announcement of Detsky Mir's intention to float
on Moscow Exchange released on 16 January 2017.
HIGHLIGHTS
* The price range for the Offering has been set at between RUB 85 and RUB 105
per Share.
* The selling shareholders are PJSFC Sistema ("Sistema"), the Russia-China
Investment Fund ("RCIF") via its investment vehicles Floette Holdings
Limited and Exarzo Holdings Limited, as well as certain individual
shareholders, including members of the management teams of the Company and
Sistema (collectively, the "Selling Shareholders").
* The Selling Shareholders are expected to sell a total of up to 247.9 million
Shares, including the over-allotment option, which based on the announced
price range would represent an Offering size of between RUB 21.1 billion and
RUB 26.0 billion, valuing the Company at between RUB 62.8 billion and RUB
77.6 billion.
* In connection with the Offering, Sistema, Floette Holdings Limited and
Exarzo Holdings Limited have granted to the Joint Bookrunners an over-
allotment option to purchase Shares representing up to 15% of the Shares
sold by them in the Offering.
* Following the Offering, the free float is expected to be approximately
33.55% (assuming full exercise of the over-allotment option).
* The Offering comprises an offering of the Shares (i) outside the United
States in reliance on Regulation S under the U.S. Securities Act of 1933, as
amended (the "Securities Act"), and (ii) within the United States to certain
qualified institutional buyers as defined in, and in reliance on, Rule 144A
under the Securities Act.
* Sistema intends to maintain majority ownership of the Company in the medium
term, while all other Selling Shareholders will also retain a stake in the
Company post-Offering.
* There will be a lock-up period of 365 days for the management of the Company
and 180 days for the other Selling Shareholders and the Company.
* The Shares were admitted to trading and will be included in Level 1 of the
List of Securities Admitted to Trading on Moscow Exchange following the
Offering.[1]
* Credit Suisse, Goldman Sachs International and Morgan Stanley are acting as
Joint Global Coordinators and Joint Bookrunners. Sberbank CIB and UBS
Investment Bank are acting as Joint Bookrunners.
Vladimir Chirakhov, CEO of the Company, said:
"We are encouraged by the initial response we have received from potential
investors since our Intention to Float announcement, and are excited to progress
to the next phase of the Offering as we announce our price range.
"The IPO comes after a year in which the Company appears set to have delivered
the strongest sales performance in its history. Preliminarily, we expect our
full-year 2016 revenue to increase by around 30% year-on-year, and like-for-like
sales at our stores in Russia by approximately 10.8%. We also opened 100 new
stores during the year. At the same time, online sales, which represent a
rapidly growing segment and important driver of future growth of the business,
nearly doubled year-on-year.
"We are growing faster than other major retailers in our space with substantial
headroom for further growth. We have consistently delivered superior returns on
capital and believe that we will continue to do so. At the same time, we have
adopted a dividend policy to pay at least 50% of our annual net profit in
dividends. This is why we believe Detsky Mir represents a uniquely attractive
investment proposition."
ABOUT DETSKY MIR
GROUP HIGHLIGHTS
* Undisputed market leader in Russia in a large, growing and resilient
consumer market segment
* Category-defining brand, highly popular customer proposition and
longstanding presence in the market
* Highly diversified product selection that attracts customer traffic and
supports growth and resilience of sales and profitability
* Rapidly growing e-commerce and omni-channel proposition underpin the
Company's growth
* Asset-light cash-generative business model providing strong returns on
capital and enabling consistent dividend payments
* Scalable supply chain and infrastructure platform
* Strong management team with track record of delivering business growth
Detsky Mir is the largest specialised children's goods retailer in Russia, with
a diversified product portfolio comprising toys, products for newborns, fashion
(apparel and footwear), large items, and other products. It is the market leader
both in terms of size of store network and in terms of revenue in the highly
fragmented market for children's goods in Russia. According to Ipsos Comcon, in
2015, Detsky Mir had an estimated share of 32% (24% in 2014) of the specialised
children's goods retail market in Russia and 13% (10% in 2014) of the total
market for children's goods in Russia (including hyper- and supermarkets). This
compares to 9% of the specialised children's goods retail market and 4% of the
total market of children's goods for its largest competitor, also according to
Ipsos Comcon.
The Group strongly benefits from the "Detsky mir" brand, which dates back to the
opening of the first "Detsky mir" branded store in central Moscow in 1947.
Thereafter, all large children's stores or department stores in the Soviet Union
selling children's goods were named "Detsky Mir", and the brand has been closely
associated with the entire national children's goods retail industry. This
superior brand recognition persists and is confirmed by the findings of a recent
consumer survey by Ipsos Comcon, where 97% of respondents mentioned the brand
when prompted.
As at 31 December 2016, Detsky Mir operated a network of 525 stores, comprising
468 stores in Russia and 12 stores in Kazakhstan operating under the "Detsky
mir" brand and 45 ELC stores in Russia. ELC stores offer various educational and
learning games and other toys for newborns and children up to 14 years old.
Total selling space as at 31 December 2016 was approximately 596 thousand square
metres. Headquartered and originated in Moscow, Detsky Mir has gradually
expanded its footprint outside Moscow since 2003, and at present the network
outside Moscow accounts for approximately 70% of the Group's revenue. Detsky Mir
primarily seeks to operate in cities with populations in excess of 50,000
people. In Russia, the Company has a nationwide presence with stores located in
171 of the approximately 300 cities with more than 50,000 inhabitants, based on
Rosstat population data as at 31 December 2016. Detsky Mir has stores in all of
Russia's 20 largest cities and in seven cities in Kazakhstan.
In addition to retail stores, Detsky Mir offers its products through its
www.detmir.ru and www.elc-russia.ru websites. In 2011, the Company launched its
online store, which has experienced significant growth since then. The Company's
management believe that Detsky Mir's superior brand recognition and customer
loyalty are particularly important in capturing market share in the fast
developing online segment of the market. In 2015, Detsky Mir completed the roll-
out of its "in-store pickup" service for goods ordered online throughout its
retail network in Russia. The Group is continuously improving its online
proposition by expanding the online product range and further integrating the
online and offline platforms. In the nine months ended 30 September 2016, Detsky
Mir recorded over 63 million visits to its online store, and the number of
orders placed via the online store was over 1 million.
Detsky Mir has adopted a dividend policy to pay at least 50% of annual net
profit (calculated based on its full year IFRS accounts) in dividends, subject
to the Group's need for financial resources for capital expenditures and its
ability to meet its obligations as they fall due. The decision to pay a dividend
must be approved by the Group's General Shareholders' Meeting following a
recommendation by the Board of Directors.
Investor contacts
Alexey Voskoboinik
Head of Investor Relations
Office: +7-495-781-0808, ext. 2582
Mobile: +7-915-129-9905
AVoskoboinik(at)detmir.ru
Media contacts
Detsky Mir
Nadezhda Kiseleva
Head of PR
Office: +7-495-781-0808, ext. 2041
Mobile: +7-903-969-0086
nkiseleva(at)detmir.ru
EM
Denis Denisov
+7-985-410-3544
denisov(at)em-comms.com
Tom Blackwell
+7-919-102-9064
blackwell(at)em-comms.com
Peter Morley
+44-7927-186645
morley(at)em-comms.com
Disclaimer
Some of the information in these materials may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Detsky Mir. You can identify forward looking statements by terms
such as "expect", "believe", "anticipate", "estimate", "intend", "wiII",
"could," "may" or "might" the negative of such terms or other similar
expressions. Detsky Mir wishes to caution you that these statements are only
predictions and that actual events or results may differ materially. Detsky Mir
does not intend to update these statements to reflect events and circumstances
occurring after the date hereof or to reflect the occurrence of unanticipated
events. Many factors could cause the actual results to differ materially from
those contained in projections or forward-looking statements of Detsky Mir,
including, among others, general economic conditions, the competitive
environment, risks associated with operating in the Russian Federation, rapid
technological and market change in the industries Detsky Mir operates in, as
well as many other risks specifically related to Detsky Mir and its operations.
--------------------------------------------------------------------------------
[1] Subject to compliance with the applicable minimum free float requirement of
10%
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Detsky Mir via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 26.01.2017 - 08:00 Uhr
Sprache: Deutsch
News-ID 520066
Anzahl Zeichen: 15012
contact information:
Town:
Moscow
Kategorie:
Business News
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