Mercury Retail Holding PLC announces indicative price range for IPO on Moscow Exchange
Mercury Retail Holding PLC, the largest ultra-convenience store operator and the third largest food retailer in Russia, today announces the indicative price range in respect of its proposed initial public offering of global depositary receipts and listing on Moscow Exchange.
The full release is attached. Key points to note are:
· The price range in respect of the Offering has been set at between USD 6 and USD 6.50 per GDR, implying a market capitalisation for Mercury Retail of between USD 12 billion and USD 13 billion.
· The Offering consists of an offering by Mercury Retail Group Limited of up to 200,000,000 GDRs, each representing one existing ordinary share of Mercury Retail Holding PLC. Based on the Offering Price Range, this implies an approximate offering size of between USD 1.2 billion and USD 1.3 billion.
· The final offer price will be determined following a book-building process, which begins today and is expected to complete on or around 9 November 2021.
Igor Kesaev, Chairman of Mercury Retail, said:
“We are proud of our business model and look forward to presenting it to international and Russian investors. We believe they will appreciate the unique combination of our robust growth and profitability, the enormous market opportunity, and Mercury Retail’s development potential and attractive dividend policy.
“Our company created and is actively developing the ultra-convenience format – the most progressive and fastest-growing format in Russia – offering our customers not only the best proximity but also the best prices on their daily shopping, as well as quick and convenient service. We look to the future with confidence. The tremendous prospects for the continued expansion of our store network to uniformly high standards across Russia, combined with the engagement of our experienced team in all business processes every day and a tried-and-trusted business model, create enormous potential for Mercury Retail’s continued growth for many years to come.”
Mercury Retail’s strong operational performance continued in 3Q 2021. LFL sales during the period increased by approximately 14% year-on-year, while LFL sales for the first nine months of 2021 grew by approximately 17% year-on-year.