Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Russian Retailers Hammered on London Exchange as Metro Mulls Delaying IPO

German retailer Metro is monitoring market conditions, including the turmoil in Ukraine, as it proceeds with plans to list a stake in its Russian wholesale business.

Meanwhile, share in Russian hypermarket chain Lenta, which made its stock market debut in London on Friday, fell 8.9 percent as the Market opened on Monday.

Metro has made good progress in preparing for an initial public offering, although market conditions need to be favorable and it is assessing the situation in Ukraine, a spokesman for the company said Monday.

Shares in Metro fell 5.2 percent in early trade, making them the biggest decliners among European retail stocks, on concern that turmoil in Ukraine could scupper the listing plan.

The company was hoping to raise at least 1 billion euros ($1.38 billion) by selling a quarter of its Russia cash-and-carry unit in a London listing, organized by Goldman Sachs and Sberbank.

On Friday, Lenta found its share offering blunted by negative sentiment toward Russia, amplified by the unfolding crisis in Ukraine. The company's global depositary receipt — one share is equivalent to five GDRs — started trading at $9.70, below the set price of $10. Soon after the start of trading Monday, the shares were trading below $9 per GDR,

Other Russian retailers also struggled on the London Stock Exchange Monday. Magnit, the country's largest retailer by revenue, was down 12.4 percent at 8 p.m. Moscow time, having fallen 18 percent earlier in the day. X5, Magnit's closest competitor, plunged 19 percent in early trading before recovering to 11.6 percent below the previous day's close.

Material from the Moscow Times was used in this report.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

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 you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more