Russia's Iteco trucking company allows for possibility of IPO in 2028-2029

MOSCOW. July 29 (Interfax) - Iteco, among Russia's largest FTL carriers, allows for attracting investments through an IPO in 2028-2029, Yevgeny Babayev, company founder and president, said during an interview with the Infranews portal.

The carrier's subsidiaries were merged as a holding company with JSC Iteco as the parent company at the end of 2024. The company said that the purpose of this was "to expand opportunities for attracting investments and development", among other matters. The holding structure currently includes four operating companies, namely Iteco Russia LLC, which is the main subsidiary specializing in cargo transportation; JSC Iteco Resource, which is a network of service centers for servicing and selling equipment; Iteco Technology LLC, which is an IT division; and Iteco Cargo LLC, which is a legal entity established in order to reorganize the company's LTL division.

Babayev confirmed in the interview with Infranews that the reorganization procedures are a step toward a possible IPO. "Consolidating the group of companies as a single structure should improve transparency and capitalization. A joint-stock company provides more opportunities for determining the price of shares, and for their issue. This is a form of ownership that is suitable for a larger number of investors, including going public," he said.

The company forecasts that "the most convenient time for attracting investments is 2028-2029".

"The response would be minimal going public at this time. This is not because there is no demand or people willing. We believe that capitalization of the stock market should first become denser. The money that is currently stored in deposits and bonds should appear on the stock market. It would start growing, and this would be a more appropriate time to go public, and not only for us," Babayev said.

As reported, Iteco Russia LLC, in cooperation with Alfa-Bank, placed two issues of digital financial assets (DFA) totaling 300 million rubles each in February-March this year.

According to the Iteco website, the company operates its own fleet of 5,000 trucks with an average age of 2.5 years, as well as over 100,000 units of attracted equipment, 10,000 of which are in active dispatch under daily management. The company is one of the largest operators of Kamaz trucks .

Iteco Group boosted revenue 36% to 71.4 billion rubles in 2024.