The 110-store retailer floated a 30 per cent stake last week at an offer price of US$6.95 (£3.34) a share, giving it a post-IPO market capitalisation of US$1.25 billion (£601 million).
M.Video president Alexander Tynkovan said: “The flotation is a key milestone in our development and will allow us to invest further in the business and capitalise on the significant growth opportunities in the Russian consumer electronics market.”
The IPO will give Western retailers greater clarity about the true growth in the electricals and mobile phone retail market in Russia.
Planet Retail non-food research manager Greg Hodge said that Russian electricals chains, particularly mobile phone retailers, talk about phenomenal sales growth but, because they are private, it is difficult to know the true figures.
In June, UK electricals giant DSGi decided against pursuing the acquisition of leading Russian electricals chain El Dorado. It is not clear why DSGi baulked, but Hodge hinted it could have been based on data that was not in the public domain. Hodge said: “Hopefully this type of IPO will give the market more clarity.”
Hodge said he “would not be surprised” if other electricals chains, including market leader El Dorado and Euroset, ranked second, followed M.Video in seeking a public listing.
According to Planet Retail, Russian retail sales are set to grow to£178.4 billion this year from£160.8 billion last year.
Sales at retailers selling electricals, entertainment and office equipment will climb 13 per cent to£15.9 billion this year.
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