Russia’s Largest Discounter Announces London IPO
Fix Price, the largest discount retailer in Russia is about to come to the city of London via IPO. The company has announced its listing in both London and Moscow. If the London IPO is successful, it will bring a multi billion-pound business into the city.
Fix Price was established in 2007 by Artem Khachatryan and Sergei Lomakin. In the year 2020, the American investment bank Goldman Sachs established a stake in the company.
The store currently has over 4200 stores in Russia as well as in other states of the former USSR. It currently has 1800 product lines that range from food products, cosmetics, household goods, and more. It has a simple pricing structure, with products selling either at 250 rubles (2.5 pounds) or Rbs 100 (80p).
Impressive financial results
Fix Price has impressed investors internationally with its financials. It reported a 33% increase in its revenues last year. The total revenues stood at an impressive 1.9 billion pounds. As incomes take a dip in Russia, the public’s shopping habits have changed. This has brought more customers to the Fix Price stores.
If the IPO goes ahead successfully, it would help raise a billion dollars for the business, the most for a Russian firm in London since 2017.
The CEO of Fix Price, Dmitry Kirsanov, called the announcement proof of the success the firm has achieved by scaling the business to an impressive size. Commenting on the company’s prospects in London, he claimed it had already expanded to 78 out of 85 regions in Russia, not to mention the expansion into the neighboring countries. With such an impressive track record, the company is confident it can succeed in London as well.
The underwriters for the planned IPO are J.P.Morgan, Morgan Stanley, BofA Securities, and VTB Capital. The IPO would value the company at 4.3 billion pounds.