X5 Retail Group discusses IPO for online services – department head

TASS Russian News Agency | Nov 26, 2020 at 12:14 PM

MOSCOW, November 26. /TASS/. X5 Retail Group is considering an IPO for its digital services within 2-3 years, Department Head of the Russian retailer Andrei Vasin says on Thursday.

"Plans to spin digital businesses off and hold their offering are discussed in the company. I do not believe it will be in the near term but generally this is a possible case within 2-3 years," Vasin says.

"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. The company's market capitalization increased to $7.12 bln.