RDIF leads Lenta’s $225m SPO

Unquote.com, 24.03.2015

The Russian Direct Investment Fund (RDIF) has led a $225m secondary public offering (SPO) for Russian hypermarket chain Lenta.

RDIF participated in an accelerated bookbuild placement of newly issued Lenta shares. The proceeds have been earmarked for a nationwide store expansion programme.

RDIF was joined by its co-investors and partners from the Middle East, Asia and Europe, alongside other investors.

The Moscow-based fund was established in 2011 to make equity co-investments in Russia alongside financial and strategic investors.

Lenta's stock is currently trading at around $6.75 on the London Stock Exchange following its IPO in early March. The listing saw TPG Capital reap $479m for an 11.1% stake and valued the company at $5.4bn, with a market cap of $4.3bn. VTB Capital Private Equity sold a 2.6% stake for $112.8m. Lenta raised $952m through an overall listing of 22.1% of its existing share capital.

Company

Founded in 1993 in St Petersburg, Lenta claims to be Russia's second-largest hypermarket chain. It operates 111 stores in 62 cities, along with a further 24 supermarkets in the Greater Moscow area. It also has four distribution centres across Russia.

The company generated turnover of RUB 194bn in 2014, up 34.5% from RUB 144.3bn in 2013. Its EBITDA stood at RUB 21.4bn, up 29.8% from RUB 16.5bn a year previously. Net profit, meanwhile, for last year was RUB 9.1bn, with net debt at RUB 59.2bn, or 2.8x EBITDA. Lenta employs around 35,100 people.