Russian hypermarket chain Lenta, part-owned by U.S. private equity firm TPG, on Friday set its planned London initial public offering at the lower end of a range netting around $1 billion for selling shareholders.
Lenta is among a number of retail companies hoping to tap into demand from foreign investors for stakes in consumer-oriented businesses in Russia.
Other consumer-focused IPOs are expected such as children’s goods retailer Detsky Mir, owned by oil-to-telecoms conglomerate Sistema, corporate and individual loans bank Credit Bank of Moscow and German retailer Metro AG’s Russian cash-and-carry business.
Lenta said the total size of the offering is $952 million, or $1.1 billion if its over-allotment option is exercised in full. It will give the company a market value of $4.3 billion.
The company set a price of $10 per global depositary receipt (GDR), at the lower end of a range of $9.5-$11.5. One share is equivalent to five GDRs.