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Russian ecommerce group Ozon information for IPO valued at as much as $5.6bn

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Russian ecommerce group Ozon will file paperwork on Tuesday to go public within the US at a valuation of $4.6bn to $5.6bn, based on two folks conversant in the plans.

Ozon is looking for to lift between $750m and $1bn from the preliminary public providing on the Nasdaq change, the folks stated, up from an initially deliberate $500m amid robust demand.

The corporate will start a roadshow for buyers on Wednesday forward of a doable flotation via itemizing American Depositary Shares (ADS) later this month, they added. Traders in Russia can even be capable to commerce a number of the ADSs on the Moscow change.

Ozon is one in every of a number of firms vying for Russia’s Rbs33.6tn retail market, which market researcher Infoline predicts will develop to Rbs46.2tn by 2025.

Regardless of Russia’s 95m lively web customers — essentially the most of any nation in Europe — the ecommerce sector has been sluggish to take off due to the lengthy distances and different logistical difficulties within the nation.

Ecommerce gross sales make up 10.9 per cent of the Russian retail market, the place the highest 10 companies solely account for 1 / 4 of complete retail gross sales.

The net market additionally stays fragmented, with the highest three gamers solely controlling 18 per cent of the market — as in contrast with about 50 per cent for Amazon within the US.

Russian conglomerate Sistema and personal fairness agency Baring Vostok, which management about 40 per cent every of Ozon and are contributing $135m within the new fundraising as a way to retain that management, are among the many deep-pocketed backers seeking to develop the market.

Wildberries, Russia’s top-selling ecommerce firm, is combating off competitors from search big Yandex, a three way partnership from China’s AliExpress and Russia’s Mail.ru, and state-run financial institution Sberbank, which stated this month it deliberate to develop into the sector.

Sberbank mentioned taking a stake in Ozon, which ranks second in Russian ecommerce, based on folks concerned within the talks, earlier than its homeowners determined they may increase extra funds via the US IPO.

The financial institution demanded a Rbs1bn break-up payment from Ozon, then introduced final week it had settled the declare.

Russian ecommerce gross sales elevated by 51 per cent 12 months on 12 months within the first six months of 2020 because the Covid-19 pandemic accelerated a shift in the direction of on-line procuring, based on Infoline.

Ozon stated in SEC filings that its income rose to Rbs66.6bn within the first 9 months of 2020, a year-on-year acquire of 70 per cent. It misplaced Rbs12.9bn throughout that point interval, a negligible shift from Rbs13bn a 12 months earlier.

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