First ever online retailer issues IPO on Moscow stock exchange

Leading consumer electronics online retailer Utinet.ru was introduced this week on MICEX, one of the two Moscow stock exchanges.

The company’s bid book, which was open from July 5 to July 19, was oversubscribed by nearly 230% at the upper band of the price range – 195 rubles, or almost $7 per share – the company announced.

A total of 2 million common shares were floated, which represents 10% of the company’s charter capital. Utinet’s market capitalization totals 3.9 billion rubles, or $139 million, with proceeds from the IPO amounting to 390 million rubles, or $13.9 million.

Utinet’s common shares are listed on the MICEX ‘Innovations and Investments Market.’ Secondary trading of its stock will begin on July 25, 2011.

Utinet is the first online retailer to go public. “In our view, Utinet’s success bodes well for a whole cohort of other promising e-commerce and Internet businesses to go public”, said MICEX vice president Gennady Margolit.

“Demand among Russian investors for stock in innovative companies is growing rapidly and we expect this trend to continue going forward, which is a sign that the Russian stock market is maturing”, said Vladislav Kochetkov, President and Chairman of the Board of Finam Investment Holdings, which arranged the Utinet IPO.

Utinet.ru was founded in Moscow in 2004. In 2010, the company’s sales totaled about 1 billion rubles, or $36 million. In the first six months of 2011, Utinet’s sales grew to 892 million rubles, or $32 million, up 345% from the previous year.

Source: Utinet

Topics: Capital markets, E-Commerce, Finance, Internet, News
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