Obuv Rossii Group of Companies has doubled its business valuation before a possible IPO - from 6-8 billion to 14 billion rubles. The company also changed the organizer of the IPO on the Moscow Stock Exchange. Gazprombank became the new organizer. The representative of Obuv Rossii Natalya Pauli confirmed this information, but did not name the planned date of placement "due to the unfavorable foreign policy situation."
The company hoped to conduct a deal before the end of 2013 and attract 1,5-2 billion rubles, placing up to 25% of the share capital. This implied an assessment of the entire business of the company in 6-8 billion rubles. In March, Titov said that the company was in no hurry with an IPO, but under favorable market conditions, placement could take place in the fall of 2014.
Now the company estimates the value of its business at 14 billion rubles. Obuv Rossii's revenue for the past year increased by 42% to RUB 4,91 billion. according to IFRS. The revenue plan for 2014 is more than 7 billion rubles. The company, according to Pauli, does not see a decrease in demand: “We do not see a decrease in footwear consumption in our mainstream segment”. Now the average Russian buys three pairs of shoes a year - this is close to the level of physical wear and tear, says a representative of the retailer. In terms of consumption, Russia lags far behind Europe (4-6 pairs) and the United States (6-8 pairs), so Russia has the potential to grow to at least four pairs of shoes a year, Pauli says. Obuv Rossii carries out about 50% of its sales in installments.