Fix Price has confirmed plans to float on London’s main market with a dual listing on the Moscow Exchange.
The Russian discounter said the IPO price will be determined following a book-building process, though it is believed it could raise as much as US$1bn and be valued at more than US$6bn (GBP4.3bln), with admission earmarked for next month.
The launch consists of global depository receipts offered by some existing shareholders of the company, including Luncor Overseas and LF Group DMCC, which are investment vehicles owned by co-founders Artem Khachatryan and Sergey Lomakin respectively, and a subsidiary of Goldman Sachs.
The founding shareholders will retain a significant interest in the company post-IPO, the firm said. Lomakin and Khachatryan currently each own 41.7%.
The retailer will make changes to its corporate governance structure to align with international practices, starting with the appointment of three independent non-executive directors.
They will be Alexander Tynkovan, who founded Russian electronics retailer M.Video, Elena Titova, who has over two decades of experience in investment banking, and Gregor Mowat, an experienced audit and accounting professional.
Fix Price has more than 4200 stores across Russia and has been growing sales rapidly. In 2020, revenues increased by 33% to r190.1 bn (US$2.6bn), with net profit of r17.6bn.
Like-for-like sales have risen at double-digit rates every quarter for the past four years.