Price range for VseInstrumenti.ru IPO set at 200-210 rubles/share, values co at 100 bln-105 bln rubles

MOSCOW. June 27 (Interfax) - PJSC VI.Ru, the parent company of Russian online home improvement retailer VseInstrumenti.ru, has set the price range for its initial public offering at 200-210 rubles per share, valuing the whole company at 100 billion to 105 billion rubles.

The IPO will result in a free float of about 12%, the company said in a press release. These shares will be offered by VI.Ru's majority shareholder, the beneficiaries of which are VseInstrumenti.ru's founders. The company's largest shareholder will retain a control stake after the IPO.

VI.ru, which officially announced its plans for an IPO on the Moscow Exchange on Monday, said earlier that the offering might have a primary component in addition to the secondary component, as it has registered a new share issue of up to 16.7% of potentially increased charter capital. The press release on the price range does not mention shares from a new issue.

VseInstrumenti.ru's press service told Interfax on Thursday that the IPO will not include a "primary component" after all.

Bookbuilding for the IPO will take place from June 27 to July 4. The offering is open to Russian qualified and unqualified retail investors, and Russia institutional investors.

The company also said that orders submitted from a single investor will be added up. Retail investors who submit more than 10 orders will not receive an allocation. The minimum guaranteed allocation for one retail investor will be determined by the majority shareholder based on the results of the bookbuilding. The size of allocations for institutional investors has not been set and will be determined individually based on the results of the bookbuilding.

"The issuer will seek to ensure balanced allocation among retail and institutional investors, however, a limited amount of the offering may be allocated to company employees and partners," the press release said.

VI.Ru's shares are expected to begin trading on the Moscow Exchange on July 5 under the ticker VSEH.

The company will commit to a standard lock-up period of 180 days as part of the IPO. The offering will also have a stabilization mechanism of up to 15% of the basic amount of the offering for 30 days after the start of trading.

VseInstrumenti.ru, which started operations in 2011, has more than 1,000 order pickup points in more than 300 cities, including all of Russia's million-plus cities, such as Moscow, St. Petersburg and Nizhny Novgorod, and 23 warehouses in various regions of the country. The group's product assortment amounted to over 1.5 million unique SKU at the end of 2023 and orders totalled about 22.7 million last year.

VseInstrumenti.ru's net profit rose 49% to 3.8 billion rubles in 2023 as revenue grew by 54% to 132.8 billion rubles in 2023. Sales broke down into 63% B2B and 37% B2C. The company's EBITDA totalled 10 billion rubles and the EBITDA margin was 7.6%. The net debt/EBITDA ratio was 2.