Retailer Lenta officially announces IPO plans
MOSCOW. Feb 3 (Interfax) - Major Russian hypermarket chain Lenta (Lenta, Ltd.) officially announced plans to conduct an initial public offering on Monday.
Lenta plans to place global depository receipts on the London Stock Exchange, and subsequently secure listing on the Moscow Exchange , a company statement says.
The retailer does not plan to issue new shares for the IPO; rather, stock held by TPG, VTB Capital, and the European Bank for Reconstruction and Development (EBRD) will be on offer.
TPG has a 49.8% stake in Lenta capital, the EBRD has 21.5%, and VTB Capital 11.7%. Management and the board of directors hold 1% in the company, and minority stockholders the remaining 15.9%.
The selling stockholders will be subject to a 180-day lock-up period, management and directors to a 365-day period.
The global coordinators and book-runners for the Lenta IPO are Credit Suisse, JP Morgan, and VTB Capital. Deutsche Bank and UBS Investment Bank are book-runners, TPG Capital BD is placement co-manager, and Rothschild the company's financial consultant.
There is an over-allotment option for book-runners of up to 15% of overall IPO volume.
Lenta's chief executive, Jan Dunning, is cited in the statement as saying that the company's business model and store format make it possible for Lenta to realize its growth potential on the Russian market. Lenta is now the second largest hypermarket chain operator in Russia - with 77 of them in 45 cities, along with ten supermarkets in the Moscow region. The company expanded its commercial space by 35% last year and plans to double it over the next three years.