Business

Russian fashion group Melon chooses a bank for IPO – source

The logo of Melon Fashion Group is seen at the company's headquarters in Saint Petersburg
The logo of Melon Fashion Group is seen at the company’s headquarters in Saint Petersburg, Russia on December 9, 2021. REUTERS / Anton Vaganov

December 21, 2021

By Alexander Marrow and Olga Popova

MOSCOW (Reuters) – Russian fashion group Melon has selected Sberbank CIB, VTB Capital, Goldman Sachs and BofA to help organize an initial public offering (IPO) in 2022, two people familiar with the matter said. the company’s plans told Reuters on Tuesday.

Some Russian companies could hold IPOs next year, extending the listing period that began a year ago, if geopolitics, including Ukraine tensions and other risks, don’t stand in the way of their plans.

A financial market source said Melon is aiming for a listing in the fall of 2022. A third financial market source confirmed Melon’s plans to list next year.

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

“It is too early to talk about an IPO at the moment,” Melon CEO Mikhail Urzhumtsev told Reuters earlier this month.

“The IPO is one of many growth opportunities for the company that we are looking at,” he said in an interview without providing further details.

Interest in Russian companies in listings grew as the benchmark MOEX index spiked to a record high in October, but the subsequent sell-off reminded the market of potential vulnerabilities. Russia’s vulnerability to external shocks.

Based in St Petersburg on a Soviet-era garment factory site, Melon owns four primarily women’s fashion brands – Zarina, Befree, Love Republic and Sela – with some 815 stores across the country. Russia and the CIS.

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

“We are starting to go online outside of Russia and the CIS countries and we believe this is the way out for us, mainly online,” Urzhumtsev said, explaining that The company planned to use e-commerce marketplaces for this.

Swedish property firm Eastnine, which holds a 36% stake, said in a nine-month report that Melon’s strong growth has opened the door to divestment. Eastnine said this could be some form of an IPO and could happen before the summer of 2022.

Melon’s creative hub is based in St Petersburg, where styles and boutiques are designed. Manufacturing is largely based elsewhere, with the majority in China.

Sustainability has long been important to the company, Urzhumtsev said, but the company is focused on in-depth diagnostics of its supply chain and factories next year.

(1 dollar = 73.8010 rubles)

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

https://www.oann.com/russias-melon-fashion-group-picks-banks-for-ipo-sources/?utm_source=rss&utm_medium=rss&utm_campaign=russias-melon-fashion-group-picks-banks-for-ipo-sources Russian fashion group Melon chooses a bank for IPO – source

Bobby Allyn

USTimeToday is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@ustimetoday.com. The content will be deleted within 24 hours.

Related Articles

Back to top button