Melon Fashion Group of Russia chooses banks for IPO – sources

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MOSCOW, Dec.21 (Reuters) – Russian group Melon Fashion Group has selected Sberbank CIB, VTB Capital, Goldman Sachs and BofA to help organize its initial public offering (IPO) in 2022, two sources with knowledge of the company’s projects.

Several Russian companies could go public next year, 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. A third financial market source confirmed Melon’s plan to list next year.

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

“It’s too early to talk about an IPO right now,” Melon CEO Mikhail Urzhumtsev told Reuters earlier this month.

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

Russian companies’ interest in quoting stocks grew as the benchmark MOEX (.IMOEX) hit record highs in October, but a subsequent sell-off reminded the market of the vulnerability of the market. Russia to external shocks.

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 and the United Kingdom. IEC.

Melon’s revenue jumped 66% in the first nine months of 2021 to 28.3 billion rubles ($ 383.5 million), surpassing the 2020 result. Its online business grew by 7% of sales in 2017 to 34% in 2020.

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

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 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 = 738010 rubles)

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Reporting by Alexander Marrow, Olga Popova and Andrey Ostroukh Editing by Mark Trevelyan and Mark Potter

Our standards: Thomson Reuters Trust Principles.


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