According to Reuters, this IPO would be the first by a Russian retailer since hypermarket chain Lenta sold shares in London, back in 2014. As of the end of 2016, the retailer Detsky Mir had 525 stores, 468 of which were based in Russia.
Goldman Sachs International, Morgan Stanley and Credit Suisse are expected to act as joint global coordinators and joint book-runners. After the offering, the free float for Detsky Mir is expected to be around 33.55 percent. The announcement comes after the brand announced its intention to float on the Moscow Exchange just 10 days ago.
Following the initial IPO news, the chief executive of Sistema — which currently maintains majority ownership — told CNBC at the World Economic Forum last week the company was undertaking the IPO for practical purposes and had to "create value and monetize (their) assets."
"We started developing Detsky Mir about four years ago and at that point the value of that business I should say was around five to 10 billion rubles maybe," Mikhail Shamolin, president and CEO of Sistema, told CNBC at Davos.
"And we clearly succeeded in building a large business out of it and its value today exceeds that of three years ago, probably ten-fold even more."