Grocer Magnit has raised $527 million in an oversubscribed secondary share offer, with strong demand from international funds.

The issue is the largest Russian secondary share offering since the financial crisis hit in the summer of last year, and only the second to take place after steelmaker Evraz raised $315 million by selling shares and $650 million through a convertible bond issue in July.

Magnit currently has about 3,000 stores — more than any other retail chain in Russia — and plans to use the cash to expand further, as analysts say its budget format could benefit from a recession that has seen consumers spend less.

“The company intends to use the net proceeds it receives from the issuance … to finance further expansion of its chain of hypermarkets as well as to continue the expansion of its convenience store operations and further development of its logistics capabilities,” Magnit said in a statement Thursday.

The Krasnodar-based retailer said it had allocated 5.68 million newly issued shares in the form of Global Depositary Receipts to international institutional investors, raising $369.2 million.

Magnit’s existing shareholders signed up for 2.43 million new shares through the exercise of pre-emptive rights, taking the total amount of shares placed to 8.11 million and gross proceeds from the placement to about $527 million.

It priced the issue at $13 per GDR, which is closer to the top end of its $12 to $13.50 indicative price range, and at $65 per ordinary share.

A source close to the situation said Wednesday that the order book was oversubscribed.