Moscow (Reuters) – Russian hypermarket chain Lenta, part-owned by U.S. private equity firm TPG and Russia’s VTB Capital, has selected banks for a possible initial public offering (IPO) next year, two sources familiar with the situation said.
The banks chosen are JP Morgan Chase & Co, Credit Suisse, UBS, Deutsche Bank and VTB, the sources said.
Fast-growing retail and consumer stocks have been among the few bright sparks of the Russian market this year and a stock market listing could play well with fund managers looking for a way to profit from the country’s growing middle class.
Russia’s MICEX consumer index has risen 11 percent this year, versus a 13 percent fall in the broad MICEX, with food retailer Magnit, a popular pick that trades at a hefty premium to the deeply discounted Russian market.
“(Lenta) is well run, with good margins and it’s slap bang in the middle of the emerging markets consumer theme which is a global theme,” said one trader. “It also plays into the non-Russian state-run businesses theme, which active fund managers of Russian portfolios are keen on.”
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Lenta Picks Banks for Possible IPO
