Money Talks: Detsky Mir lists in Moscow Description video: The stock of Russia’s largest toy retailer, Detsky Mir (or Children’s World), began trading on Friday after an initial public offering earlier this week. The company raised $355 million on the […]
Money Talks: Detsky Mir lists in Moscow
The stock of Russia’s largest toy retailer, Detsky Mir (or Children’s World), began trading on Friday after an initial public offering earlier this week. The company raised $355 million on the Moscow stock exchange, valuing it at around $1 billion. That’s being seen as a sign that investors are making a cautious return to Russia. Julia Lyubova reports from Moscow. Interview with Alexander Prosviryakov , president of Whitestone Capital.\r\n \r\nSubscribe: https://www.youtube.com/channel/UC7fWeaHhqgM4Ry-RMpM2YYw?sub_confirmation=1\r\n\r\nLivestream: http://www.youtube.com/c/trtworld/live\r\n\r\nFacebook: https://www.facebook.com/TRTWorld\r\n\r\nTwitter: https://twitter.com/TRTWorld\r\n\r\nVisit our website: http://www.trtworld.com/
Detsky Mir shares aroused great interest from global investors
AFK "System" and the Russian-Chinese Investment Fund (RCIF) sold part of their shares in Detsky Mir. Moscow hosts first public offering since the start of the coronavirus pandemic.
AFK «System» and RDIF announced that they raised about 11 billion rubles, having sold 117.8 million securities of a children’s goods retailer at 93 rubles per share, thereby reducing their shares in the company to 20.38% and 4.62%, respectively.
SPOs around the world have been few in recent times due to the coronavirus pandemic. However, investors are beginning to cautiously return to the markets after abandoning asset acquisitions in April and May..
The Russia-China Investment Fund (RCIF) is a joint venture between RDIF and China Investment Corporation.
CEO of RDIF Kirill Dmitriev stated that demand exceeded supply five times, with more than 60% of the shares being bought by leading investment funds in Europe, America and Asia.
General Co-Director of RCIF Bing Hu believes that investments in «Child’s world» – it is a vivid example of successful Chinese investments in Russian companies.
RDIF jointly with AFK «System» reopened the Russian market to foreign investors after the outbreak of the pandemic. Dmitriev noted that the placement of shares «Children’s world» became the first successful placement of Russian securities in 2020.
The placement was organized by Credit Suisse, Goldman Sachs, Sberbank CIB, "VTB Capital" and Alfa-Bank.
The retailer’s shares on Wednesday traded at around 99 rubles, having risen in price by more than 2%. AFK papers «System» increased in price by 3.6%, to 17.6 rubles.
Many Russian companies that were initially targeting IPOs this year have postponed their IPO plans as the market has been paralyzed by the coronavirus epidemic.