X5 Retail Group discusses IPO for its online businesses

TASS Russian News Agency | Nov 26, 2020 at 1:58 PM

MOSCOW, November 26. / TASS /. Russia's X5 Retail Group (manages the Pyaterochka, Perekrestok and Karusel chains) is discussing IPOs of its digital businesses in 2-3 years, said the head of X5 investor relations Andrei Vasin during an online meeting organized by the Aton investment company.

""Plans to spin digital businesses off and their placement in the company are being discussed. I do not think this is a short-term plan, but in general, this is a possibility in 2-3 years, Vasin said.

"Ozon has recently made the offering with a very strong multiplier - this was a huge hit for the market. Capitalization is $8 bln already, while the company has not yet reached EBITDA profitability. On the other part, this is a very strong brand and very high growth rates," Vasin says. "We have two digital services in X5 - Perekrestok Vprok and express delivery," he noted. X5 is surprised and impressed of the market response to Ozon's IPO he added.

Trading in stocks of the Russian e-commerce company Ozon kicked off on November 24 on the Moscow Exchange and NASDAQ. The trading session at NASDAQ closed at the level of $40.18 per American Depositary Share (ADS) of Ozon, while the offer price was $30 per share.