Russian non-food retailers back to the market public offerings. So one of the biggest sellers of clothes and shoes in the country, GK “Footwear of Russia” Anton Titov, intends to offer investors new shares at RUB 2.8 bn, which corresponds to 25% of the current share capital. Analysts believe that the paper will be posted in a earlier investor.The Board of Directors of PJSC’OR, the parent company of GK “Footwear of Russia” took a decision to increase the Charter capital by placing additional shares at RUB 2.8 bln the company said today. The papers are placed via public subscription with preferential right of acquisition by the current shareholders. It is planned to place for 28.26 million shares, which corresponds to 25% of the current share capital. Nominal value of one share is RUB 100 Price, terms, and other placement options will be determined by the Board of Directors of PJSC.”Footwear of Russia” was founded in 2003, has headquarters in Novosibirsk and Moscow office. Manages 8, 5 thousand shops under the brands of Westfalika, “Pedestrian”, Rossita, Emilia Estra. Also owns two Shoe factories in the Novosibirsk region. In 2019, the group’s revenue was 13.7 billion rubles., net profit — 1.7 billion rubles., EBITDA — RUB 3.6 billion.”Footwear of Russia” has spent IPO on the Moscow stock exchange in 2017, having received from investors 5.9 billion rubles, becoming the first public company in the Russian fashion market. At 31 December 50% stake in the group owned by the founder Anton Titov, 2% had other shareholders, the rest is free float. In 2017-2019 years in the number of shareholders of the group included Mikhail Prokhorov (takes 11-th place ranking in Forbes with a fortune of $11.2 billion).In “Footwear of Russia” has informed that the proceeds from the placement will be used to Finance further growth and the implementation of the updated business model, including retail, marketplace and online platform, as well as the development of financial services, including cash loans.On Monday evening one share on the Moscow exchange was worth 34.5 RUR “a Priority for us in the near future — integration in the logistics infrastructure of the Russian market of online trading and developing their own online platforms. In addition, we will continue implementing the concept of the store as a service point, develop financial services, including in an online format,” said Anton Titov.Senior analyst at Gazprombank Marat Ibragimov believes that the new shares will be issued in favor of any investor, defined earlier. According to him, the funds shall improve financial position of the group, as all credit metrics “Footwear of Russia” has continued to deteriorate amid rising inventory, resulting from the warm winter and pandemic COVID-19. In addition, the company was able to go on placement due to the deterioration of GIFthe birth of equity, the analyst adds.Nikita Sharenkov
