O’Key Group, Russia’s third-largest food retailer, has received orders for all the stock on sale in its $540 million initial public offering, two people familiar with the transaction said Monday.
Goldman Sachs Group and VTB Capital, the two banks arranging the sale, have orders for all the shares at about the middle of the $9.90 to $12.90 price range used to market the stock to investors, said the people, who declined to be identified because the information isn’t yet public. The lenders were to complete taking orders for the Global Depositary Receipts at 2 p.m. in London on Monday, one of the people said.
O’Key plans to sell as many as 41.9 million shares, including the so-called over-allotment option. At the middle of the range, the IPO would raise $478 million. A Moscow-based spokesman for the St. Petersburg-based company wasn’t immediately available to comment.
Russian retailers led by X5 Retail Group and Magnit are adding stores and locations to benefit from a recovery that’s boosting disposable incomes and spending. The government expects the economy to expand about 4 percent after last year’s 7.9 percent contraction, the steepest since the collapse of the Soviet Union in 1991. X5, Russia’s biggest food retailer by sales, has gained 32 percent in London this year, while Magnit, the second-largest, has advanced 69 percent.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
