Russian electronics chain aims at $US1BLN through IPO
Russia's second largest electronics retailer M.Video, plans to offer its shares to the public on Russia's exchanges before the end of this year. But its IPO, which values the company at more than $US 1 BLN, may not be as successful as it hopes.
M.Video needs money to expand, at least that’s how they explain its reasons for going public. M.Video may offer between 20 and 30 per cent of its shares, raising $US 300 to 400 MLN in the process.
Founded in 1993, the retailer had a turnover of $US1.4 BLN in 2006. But M.Video stands far behind their main rivals, Eldorado, whose turnover was three times as much over the same period. In fact, experts say, being second best could be a decisive factor in M-Video’s share placement.
M.Video has more than 100 outlets in 38 cities, as well as an online store. Some insiders say the IPO could be a way to cash in for some of M.Video's shareholders ahead of a possible sale of the company.
Other electronics retailers are likely to follow. Market leader Eldorado, as well as Tehnosila and Mir already have already said they are considering IPOs in the near future.