DETSKY MIR PRICES INITIAL PUBLIC OFFERING AT RUB 85 PER SHARE
(Thomson Reuters ONE) -
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DETSKY MIR PRICES INITIAL PUBLIC OFFERING AT RUB 85 PER SHARE
Moscow, Russia - 8 February 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 announced the
pricing of its initial public offering (the "Offering") of its ordinary shares
(the "Shares") on Moscow Exchange.
HIGHLIGHTS
* The offer price has been set at RUB 85 per Share.
* The total size of the Offering is approximately RUB 21.1 billion, including
the over-allotment option, or RUB 18.4 billion, excluding the over-allotment
option.
* The Offering implies a market capitalisation at the commencement of dealings
of approximately RUB 62.8 billion.
* The Shares have been admitted to trading in Level 1 of the List of
Securities Admitted to Trading on Moscow Exchange. Trading is expected to
commence on 10 February 2017 under the ticker "DSKY".
* The Offering consists of a sale by existing shareholders (the "Selling
Shareholders") of 247,912,160 Shares, or 33.55% of the Company's existing
share capital, including the over-allotment option or 216,514,669 Shares,
representing 29.30% of the Company's existing share capital, excluding the
over-allotment option.
* The Selling Shareholders are:
* PJSFC Sistema ("Sistema") owned a 72.57% stake immediately before the
Offering, and sold 145,055,738 Shares, representing approximately
19.63% of the Company's share capital, with the possibility to increase
the number of Shares sold to a total of 166,814,099 (representing
approximately 22.57% of the Company's share capital) in the event that
the over-allotment option is exercised. As a result of the Offering
Sistema will retain a stake in Detsky Mir of at least 50% +1 share.
* Russia-China Investment Fund ("RCIF", established by the Russian Direct
Investment Fund (RDIF) and the China Investment Corporation (CIC)) owned
via its investment vehicles Floette Holdings Limited and Exarzo Holdings
Limited a 23.10% stake immediately before the Offering, and sold
64,260,870 Shares, representing 8.70% of the Company's share capital,
with the possibility to increase the number of Shares sold to a total of
73,900,000 (representing approximately 10.00% of the Company's share
capital) in the event that the over-allotment option is exercised. As a
result of the Offering RCIF will retain a stake in Detsky Mir of at
least 13.10%.
* Certain individual shareholders, including members of the management
teams of the Company and Sistema, collectively owned a 4.33% stake
immediately before the Offering, and sold 7,198,061 Shares, representing
approximately 0.97% of the Company's share capital. As a result of the
Offering the individual shareholders will collectively retain a stake in
Detsky Mir of 3.35%.
* 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 at the offer price.
* In connection with the Offering, Goldman Sachs, acting as stabilising
manager, will have the right, during a period of up to 30 calendar days from
the date hereof, to purchase from the market, for stabilisation purposes, up
to 31,397,491 Shares.
* 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.
* 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 Detsky Mir, said:
"We are delighted by the strong market interest in our offering, and are pleased
now to move forward with a high-quality and geographically diverse shareholder
base. The IPO caps off an extremely successful year for Detsky Mir. We expect
our financial results for 2016 to be the strongest in the Company's history and
we will continue to grow the business and further expand our market share, with
around 250 new store openings planned by 2020.
"Going forward, the focus of the management team will be to ensure that we
deliver on the promises we made during the IPO. We look forward to making our
new shareholders proud to stand behind and benefit from the continued success
story that is Detsky Mir."
Mikhail Shamolin, President and CEO of Sistema, said:
"We are pleased with the success of Detsky Mir's offering, and welcome the
expanded family of shareholders to this uniquely attractive business.
"Over the last several years we have grown Detsky Mir into a major retailer,
while consistently generating strong growth and returns on capital. Today, the
Company begins a new chapter in its history with a highly successful IPO - the
first in Russia in 2017 and the largest in EMEA year-to-date - that attracted a
highly diversified book of domestic and international investors from Europe, the
US and Asia.
"Sistema has maintained its controlling interest in Detsky Mir as we believe
that significant further potential remains to be unlocked. The Company is well
positioned to continue its growth by capitalising on its market leadership,
robust infrastructure, iconic brand and high-growth e-commerce segment under one
of the best management teams in the Russian market."
Kirill Dmitriev, CEO of the Russian Direct Investment Fund and Co-CEO of RCIF,
said:
"The IPO of Detsky Mir represents a landmark transaction for the Russian market.
The deal was made possible largely thanks to the hard work of the Company's
shareholders, including the arrival of RCIF as a pre-IPO investor in the Company
a year ago. Detsky Mir is an example of a fast-growing Russian company that
delivers impressive results, and we expect its growth to accelerate alongside
the resumption of growth in the Russian economy. Despite a difficult
macroeconomic situation, Detsky Mir achieved EBITDA growth of more than 50% in
the first nine months of 2016. The success of this deal confirms strong demand
from international investors for public placements of top quality Russian
companies. It has also opened the door for other Russian issuers looking at
public markets."
Hu Bing, Co-CEO of RCIF, said:
"RCIF remains the largest minority shareholder of Detsky Mir, whose IPO was an
important event for the Russian equity market and revealed high levels of
interest among foreign investors in Russian assets. The investment in Detsky Mir
is also an important success story for Chinese investors working in Russia and
interested in investments in the country. We intend to implement further
successful projects and investments in Russia."
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 ("Children's World" in Russian) 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.
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: 08.02.2017 - 08:00 Uhr
Sprache: Deutsch
News-ID 522684
Anzahl Zeichen: 18245
contact information:
Town:
Moscow
Kategorie:
Business News
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