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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 $949 million, it said in the updated prospectus submitted to the U.S. Securities and Exchange Commision (SEC). Three financial market sources told Reuters the books for Ozon's base-case IPO were already covered on Wednesday, with bids worth $825 million coming from the Russian investors.

Reuters | Updated: 18-11-2020 18:30 IST | Created: 18-11-2020 18:30 IST
Russian online retailer Ozon targets $1 bln in U.S. IPO

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 restrictions have kept 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 $949 million, it said in the updated prospectus submitted to the U.S. Securities and Exchange Commision (SEC).

Three financial market sources told Reuters the books for Ozon's base-case IPO were already covered on Wednesday, with bids worth $825 million coming from the Russian investors. The company, in which Russian conglomerate Sistema and private equity firm Baring Vostok each have 45% stakes, plans to list 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 helped Russia's e-commerce market to grow by 51% year-on-year in the first six months of 2020, 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, the financial market sources said.

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


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