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MOSCOW, Dec 21 (Reuters) – Russia’s Melon Fashion Group has picked Sberbank CIB, VTB Capital, Goldman Sachs and BofA to help organise its initial public offering (IPO), two sources with knowledge of the company’s plans told Reuters on Tuesday.
Several Russian companies could hold IPOs in 2022, extending the listing spree that started a year ago, if geopolitics, including Ukraine tensions, and other risks do not thwart their plans. read more
One financial market source said Melon was aiming to list in autumn 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 on a site that housed a sewing factory in Soviet times, Melon owns four, mainly women’s, fashion brands – 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 Exchange for its listing.
“It’s too early to talk about an IPO at the moment,” CEO Mikhail Urzhumtsev told Reuters in an interview earlier this month.
“An IPO is one of a variety of opportunities for the company’s development that we are considering,” he said, without providing further details.
Melon reported a 66% year-on-year increase in revenue for the first nine months of 2021 to 28.3 billion roubles ($383.5 million), already surpassing the figure for the whole of 2020. Its online business jumped from 7% of sales in 2017 to 34% in 2020, Urzhumtsev said.
“We are starting online penetration outside Russia and CIS countries and we believe this is our way out, mostly online,” he said, explaining the company planned to use e-commerce marketplaces for this.
Swedish real estate firm Eastnine, which holds a 36% stake, said in its nine-month report that Melon’s strong growth had opened up divestment opportunities. This may take the form of an IPO and could occur before summer 2022, Eastnine said.
Melon’s creativity hub is based in St Petersburg, where styles and stores are designed. Production, though fully controlled from the head office is largely based elsewhere, with the majority in China.
Urzhumtsev said sustainability had long been important to the company, but that it was focused on carrying out a deep diagnosis of its supply chain and factories next year.
($1=73.8010 roubles)
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Reporting by Alexander Marrow and Olga Popova
Editing by Mark Trevelyan and Mark Potter
Our Standards: The Thomson Reuters Trust Principles.
Register now for FREE unlimited access to Reuters.comMOSCOW, Dec 21 (Reuters) – Russia’s Melon Fashion Group has picked Sberbank CIB, VTB Capital, Goldman Sachs and BofA to help organise its initial public offering (IPO), two sources with knowledge of the company’s plans told Reuters on Tuesday.Several Russian companies could hold IPOs in 2022, extending the listing spree that started a year ago, if geopolitics, including Ukraine tensions, and other risks do not thwart their plans. read more One financial market source said Melon was aiming to list in autumn 2022.Register now for FREE unlimited access to Reuters.comMelon Fashion, VTB Capital and Goldman Sachs declined to comment. Sberbank CIB and BofA did not immediately respond.Based in St Petersburg on a site that housed a sewing factory in Soviet times, Melon owns four, mainly women’s, fashion brands – 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 Exchange for its listing.”It’s too early to talk about an IPO at the moment,” CEO Mikhail Urzhumtsev told Reuters in an interview earlier this month.”An IPO is one of a variety of opportunities for the company’s development that we are considering,” he said, without providing further details.Melon reported a 66% year-on-year increase in revenue for the first nine months of 2021 to 28.3 billion roubles ($383.5 million), already surpassing the figure for the whole of 2020. Its online business jumped from 7% of sales in 2017 to 34% in 2020, Urzhumtsev said.”We are starting online penetration outside Russia and CIS countries and we believe this is our way out, mostly online,” he said, explaining the company planned to use e-commerce marketplaces for this.Swedish real estate firm Eastnine, which holds a 36% stake, said in its nine-month report that Melon’s strong growth had opened up divestment opportunities. This may take the form of an IPO and could occur before summer 2022, Eastnine said.Melon’s creativity hub is based in St Petersburg, where styles and stores are designed. Production, though fully controlled from the head office is largely based elsewhere, with the majority in China.Urzhumtsev said sustainability had long been important to the company, but that it was focused on carrying out a deep diagnosis of its supply chain and factories next year.($1=73.8010 roubles)Register now for FREE unlimited access to Reuters.comReporting by Alexander Marrow and Olga Popova Editing by Mark Trevelyan and Mark PotterOur Standards: The Thomson Reuters Trust Principles.