Melon Fashion Group of Russia chooses banks for IPO – sources


MOSCOW, Dec.21 (Reuters) – Russian group Melon Fashion Group has chosen Sberbank CIB, VTB Capital, Goldman Sachs and BofA to help organize its initial public offering (IPO), two sources with knowledge of the plans told Reuters on Tuesday. of the society.

Several Russian companies could IPOs in 2022, extending the wave of listings that began a year ago if geopolitics, including tensions in Ukraine, and other risks do not thwart their plans. Read more

A financial market source said Melon intended to be listed in the fall of 2022.

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Melon Fashion, VTB Capital and Goldman Sachs declined to comment. Sberbank CIB and BofA did not immediately respond.

Based in St. Petersburg at a site that housed a Soviet-era sewing factory, Melon owns four fashion brands, mostly for women – Zarina, Befree, Love Republic and Sela – with around 815 stores across Russia.

The Kommersant daily reported in September, citing sources, that Melon was considering the Moscow Stock Exchange for its listing.

“It’s too early to talk about an IPO just yet,” CEO Mikhail Urzhumtsev told Reuters in an interview earlier this month.

“An IPO is one of the many business development opportunities we are considering,” he said, without providing further details.

Melon saw a 66% year-over-year increase in revenue for the first nine months of 2021 to 28.3 billion rubles ($ 383.5 million), already exceeding the figure for all of 2020. Its business online grew from 7% of sales in 2017 to 34% in 2020, said Urzhumtsev.

“We are starting to enter online outside of Russia and the CIS countries and we believe this is our solution, mostly online,” he said, explaining that the company plans to use the markets e-commerce for that.

Swedish real estate company Eastnine, which has a 36% stake, said in its nine-month report that Melon’s strong growth had opened up opportunities for divestment. It could take the form of an IPO and could take place before the summer of 2022, Eastnine said.

Melon’s Creativity Center is based in St. Petersburg, where styles and stores are designed. Production, while controlled entirely from the head office, is largely based elsewhere, mostly in China.

Urzhumtsev said sustainability has long been important to the company, but that it is focusing on performing a thorough diagnostic of its supply chain and factories next year.

($ 1 = 738,010 rubles)

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Reporting by Alexander Marrow and Olga Popova Editing by Mark Trevelyan and Mark Potter

Our Standards: Thomson Reuters Trust Principles.


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