Russian coffee chain shop Podorozhnik is planning to raise 1.9 billion roubles ($25.79 million) in an initial public offering (IPO) on the Saint Petersburg Exchange this autumn, Interfax has reported, citing the company's president, Tatyana Fomina.
Russian IPO Activity Picking Up Pace
Russian IPO activity, which took a hit from the COVID-19 pandemic last year, is picking up pace as the economy improves and concerns over fresh Western sanctions ease. UBS is expecting Russian companies to raise at least $10 billion in IPOs this year, compared with less than $2 billion in 2020.
Podorozhnik, which operates in Siberian regions of Kemerovo and Novosibirsk, is planning to hold its IPO roadshow on September 14, offering shares at 1,000 roubles ($13.58) apiece on Russia's second-largest bourse, Interfax reported.
Planning To Fund Expansion
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The company is planning to use the raised proceeds to fund its expansion to other Siberian regions, including Altai, Krasnoyarsk, Omsk and Tomsk.
Podorozhnik Vice-President Statement
"We want to grow by three times at least. Now we have 159 venues, we'd like to have around 500 venues all in all," Interfax quoted the company's senior vice-president, Oksana Dunaevskaya, as saying.
2023-2024 Share Issue Plan
The coffee shop chain is planning to offer another share issue in 2023-2024 worth three to four billion roubles and tap Russia's southern regions and Moscow suburbs.