Russian online retailer Ozon targets $1 bln in U.S. IPO

If underwriters buy up to 4.5 million more ADS, Ozon might raise as much as $948.8 million, it said in the updated prospectus submitted to the U.S. Securities and Exchange Commision (SEC). The company, in which Russian conglomerate Sistema and private equity firm Baring Vostok each have 45% stakes, plans to list the shares on the Nasdaq Global Select Market under the symbol "OZON".

Russian online retailer Ozon Holdings aims to raise nearly $1 billion in a U.S. initial public offering (IPO) to capitalise on an e-commerce boom in Russia due to the coronavirus pandemic. Like most e-commerce firms, Ozon has seen online orders surge as pandemic lockdown measures keep people at home.

In a regulatory filing, privately-owned Ozon said it planned to issue 30 million American depositary shares (ADS) at between $22.50 and $27.50 each, raising up to $825 million. If underwriters buy up to 4.5 million more ADS, Ozon might raise as much as $948.8 million, it said in the updated prospectus submitted to the U.S. Securities and Exchange Commision (SEC).

The company, in which Russian conglomerate Sistema and private equity firm Baring Vostok each have 45% stakes, plans to list the shares on the Nasdaq Global Select Market under the symbol "OZON". It is also considering a technical listing of its ADS in Moscow along with or shortly after its U.S. IPO.

Sistema and Baring Vostok would buy shares worth $67.5 million each in concurrent private placements at a price per share equal to the IPO price per ADS, the prospectus said. After the deal, Ozon's new investors would own 19% of its shares, provided that the underwriters exercised their option to purchase additional ADSs in full, the prospectus said.

The COVID-19 pandemic and nationwide lockdowns allowed the Russian e-commerce market to grow by 51% in the first six months of the year compared to the same period of 2019, the prospectus said, with full-year growth seen at 34%. Ozon, which aims to use the IPO proceeds to expand, plans to close the books on Nov. 23, three financial market sources told Reuters on Wednesday.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)