Henderson men's clothing retailer planning IPO; could place 10%-15% of shares, raise 3-4 bln rubles - media

MOSCOW. Sept 27 (Interfax) - Henderson, which is developing a chain of men's clothing stores in Russia, plans to hold an IPO on the Moscow Exchange, the RBC publication writes, citing sources.

According to the publication's sources, Henderson plans to place 10%-15% of its shares on the Moscow Exchange and raise about 3-4 billion rubles, and the retailer expects a business valuation of approximately 27-30 billion rubles based on these plans.

The IPO is planned for the fourth quarter of 2023, though the exact date depends on market conditions, RBC writes.

According to the publication's source, Henderson is expected to allocate the raised funds to develop the chain, particularly to double the area of existing stores. The retailer's total volume of retail space has already grown 29% to exceed 44,000 square meters since 2020, RBC's source noted. The source has also not ruled out that the free float could increase going forward.

Henderson, whose operating company is Tami and Co. LLC, is developing its chain of men's clothing stores and online sales through company-owned stores and marketplaces. Ruben Arutyunyan is the company's primary beneficiary.

The retailer boosted EBITDA 38% year-on-year to 2.7 billion rubles to International Financial Reporting Standards 16 in the first half of 2023. The EBITDA margin rose to 38.3% in the reporting period from 36.6% the previous year on the back of improved purchasing terms and conditions, the positive effect from operating leverage, and overall improved operating efficiency.

Net debt increased 8% to 10.65 billion rubles. The net debt/EBITDA ratio to IFRS 16 was 1.92x as of June 30, 2023. Gross profit soared 40% to 4.9 billion rubles in H1 2023, while net profit plunged 38% to 638.2 million rubles.