Rosinter SPO to raise $25 million
Russian restaurant group, Rosinter restaurants, is looking to raise $25 million through a supplementary share issue.
The company plans on using the money to retire debt and for further expansion in the market.
Last year was tough for the restaurant business as sales fell by as much as 35%. However, the lower-income market that Rosinter operates in was able to avoid the worst loses on a 0.7% percent revenue growth in 2009 to 8.5 billion Roubles.
The holding has 350 restaurants, including 95 franchisees, in Russia, the CIS, Central Europe and the Baltic States.
However, Sabina Muhamedzhanova, an analyst at the Bank of Moscow, has doubts about the success of the supplementary offering in the current post crisis environment.
“2010 will be very volatile and unstable for a restaurant market in Russia, with 2011 expected to show real growth. In fact, neither the question of the very growth of the market, nor its possible pace is clear. But if an upward trend is there, it will go up by just the average of 5-10% this year, which makes investors cautious. So, it’s difficult to say whether the SPO will be successful or not.”