Russia’s pound shop to launch London IPO

The Russian pound shop plans to raise at least $1bn (£718m) by listing global depositary receipts – certificates that allow investors to trade locally in foreign shares – on the main market of the London Stock Exchange.

Fix Price is seeking a valuation of $6bn (£4.3bn) as its low price proposition gains popularity with domestic customers.

Fix Price, which operates 4,241 shops in Russia, Kazakhstan, Georgia, Belarus, Latvia, Kyrgyzstan and Uzbekistan as well as an online shop, experienced an uplift in sales prior to the pandemic as Russian wages declined.

The discounter has also benefited from the pandemic as Russians cut down on spending after swathes of job losses across the region.

It sells food, drinks, cosmetics, clothes and other household goods for between 100–250 roubles (£0.98–£2.49).

Fix Price intends to list next month and is also planning a secondary listing in Moscow.

The retailer said in a statement that its pricing “capitalises on a structural shift towards value among consumers worldwide, which Fix Price believes allows it to benefit in almost any economic environment”.