Russian coffee chain plans $26 million IPO on St. Petersburg Stock Exchange – Ifax

MOSCOW, Aug 18 (Reuters) – Russian coffeehouse chain Podorozhnik plans to raise 1.9 billion rubles ($25.79 million) in an IPO on the St Petersburg Stock Exchange this fall, reported Wednesday Interfax, citing company president Tatyana Fomina.

Russia’s IPO activity, which was hit by the COVID-19 pandemic last year, is accelerating as the economy improves and concerns over further Western sanctions s attenuate. UBS expects Russian companies to raise at least $10 billion in IPOs this year, up from less than $2 billion in 2020.

Podorozhnik, which operates in the Siberian regions of Kemerovo and Novosibirsk, plans to hold its IPO round on September 14, offering shares at 1,000 rubles ($13.58) each on Russia’s second-largest stock exchange, Interfax reported.

The company plans to use the funds raised to finance its expansion into other Siberian regions, including Altai, Krasnoyarsk, Omsk and Tomsk.

“We want to triple at least. Now we have 159 sites, we would like to have around 500 sites in total,” Interfax said, citing the company’s senior vice president Oksana Dunaevskaya.

In 2023-2024, the coffee chain plans to offer another issue of shares worth 3-4 billion rubles and operate the southern regions of Russia and the suburbs of Moscow.

$1 = 73.6550 rubles Reporting by Olga Popova and Anna Rzhevkina; Editing by Andrey Ostroukh and Anil D’Silva