MOSCOW, October 30, 2013 /PRNewswire/ --
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OR OJSC (further «Obuv Rossii» or «the Company»), the holding company for Obuv Rossii Group, announces its intention to proceed with an initial public offering on Moscow Exchange.
Company highlights:
- Obuv Rossii is a Russia-wide footwear retailer and is among the top five footwear retailers in the country by number of stores. The company is the leader in its mid-price segment, the most prospective part of the Russian footwear market.
- The company has demonstrated rapid growth and has launche an ambitious growth strategy. Today, the company owns and operates over 250 stores in over 80 Russian cities.
- According the the Company's 5-year investment programme, Obuv Rossii plans to expand to up to 650 stores and increase revenue up to RUB 16.5 billion.
- The Company is actively developing services such as deffered payment. In the first nine months of 2013, Obuv Rossii processed 205,000 deferred payment agreements for a total sum of RUB 1054 million, a 28% increase year-on-year. As of 30 October 2013, of 370 thousand of the Company's clients have used the service.
- Obuv Rossii has demonstrated dynamic growth and robust financial results. In the first 9 months of 2013, revenue has grown by 61% year-on-year to RUB 2.97 billion, while net profit has increased by 58.6% year-on-year to RUB 300 million. EBITDA rose by 69.5% to RUB 540 million and the Company's EBITDA margin amounted to 18.1% in the first 9 months of 2013.
- Expert RA rating agency has assigned the Company a credit rating of A+, with a very high level of credit worthiness.
- The Russian footwear market is charactarized by a low level of consolidation and remarkable potential for growth, both of which the Company intends to utilize for its growth.
- The Company is run by a team of experienced managers with a progressive approach to leadership.
IPO Highlights:
- The Company intends to raise between 1.5 and 2.0 billion roubles, representing approximately 25% of the current share capital.
- The Company intends to list on Moscow Exchange.
- ALOR INVEST is the lead bookrunner on the deal. Other members of the syndicate are being selected.
- Funds raised will be used to finance the expansion of the Company's retail network in line with its approved investment programme.
- This is expected to be the first IPO of a footwear retail company from Russia.
Anton Titov, CEO and owner of the company, said:
"Our business continues to show strong year-on-year growth, and we have become a leader in the middle income segment of Russia's shoe retail industry. We intend to develop our business further by developing our retail network, investing in our brands, enhancing our assortment and providing new services to our customers.
We are working on strengthening our systems of corporate governance. We recently consolidated all of our assets into a single corporate entity. We have two independent non-executive directors, and we have IFRS accounts audited by Ernst&Young.
Going to the equity markets now is a logical step for our company, having until now funded our expansion through different forms of debt financing.
As a result of the transaction we are announcing today, not only will we see the first ever public shoe retailer in Russia, but we will also achieve a new level of corporate governance and transparency in our business. As a public company, we intend to adhere to best international practice in governance and to focus on maximising value for our shareholders."
Key facts about the Russian footwear market[1]:
- Sales on the Russian footwear market amounted to US$ 30.7 billion in 2012, making it the third largest segment of the consumer market in Russia.
- The Russian footwear market is expected to grow at rates of 7-11% per year over the coming years, with potential for growth driven by Russia's relatively low shoe purchases per capita (approximately 3 pairs per person per year in Russia, compared to 4-6 pairs in Europe and 6-8 pairs in the United States), as well as a growing income levels among Russian population and evolving consumer culture
- The share of the mid-priced segment (which the Company is focused on) is about 38%, or $11.7 billion in value terms.
- Experts predict that the medium-priced segment is set to grow as consumer wealth grows and also with changes in consumption patterns; the share of this segment could reach 44% by 2015, or $17.4 billion.
- The footwear market, particularly in the medium-priced segment, remains highly fragmented (federal retailers account for about 20% of the market), and the market is expected to consolidate in the near future. The leading players in the market will be those who have a significant retail network, strong brands, a wide range of loyal customers and a model that can be rolled out into the regions.
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1. According to DISCOVERY Research Group's research report, titled «The Global and Russian Footwear Markets», published 08 October 2013.
NOTES FOR EDITORS:
Obuv Rossii is a Russia-wide footwear retailer and is among the top five footwear retailers in the country. The company was founded in 2003 and its headquarters are located in Novosibirsk. The company's core business areas are wholesale and retail sales of footwear and related accessories as well as footwear production. Obuv Rossii is developing two footwear retail chains - Westfalika (a mono-brand in the middle price segment) and Peshekhod (a multi-brand footwear supermarket) as well as the fashion brand Emilia Estra, which offers inexpensive accessories. Today the company has a presence in over 80 cities across Russia and more than 250 stores. The Russian rating agency Expert RA has assigned the company a credit rating of A+, with a very high level of creditworthiness. Under IFRS reporting, the company's revenues in 2012 amounted to RUB 3.3 billion, and revenues in 2013 are expected to reach RUB 4.5 billion. The Group's assets are consolidated into a joint stock company with share capital of 7 billion rubles. For more information about the company, visit its corporate website http://www.obuvrus.ru.
Disclaimers
Some of the information in these materials may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company. You can identify forward looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could," "may" or "might" the negative of such terms or other similar expressions. The Company wishes to caution you that these statements are only predictions and that actual events or results may differ materially. The Company does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in the Russian Federation, rapid technological and market change in the industries the Company operates in, as well as many other risks specifically related to the Company and its operations.
Neither these materials nor any copy of it may be taken or transmitted into the United States, Australia, Canada or Japan. These materials do not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefore. The offer and the distribution of these materials and other information in connection with the listing and offer in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.
These materials are not for distribution in or into the United States (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities Act")), and do not constitute or form a part of any offer or solicitation to purchase or subscribe for any securities in the United States. The securities mentioned herein have not been, and will not be, registered under the Securities Act. The securities mentioned herein may not be offered or sold in the United States except pursuant to an exemption, or a transaction not subject, to the registration requirements of the Securities Act of 1933. The Company has not registered and does not intend to register any portion of any offering in the United States or to conduct a public offering of any securities in the United States.
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Media enquiries:
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