Russian hypermarket chain Lenta, which part-owned by US private equity firm TPG, may proceed with its London initial public offering as early as next week, three sources familiar with the matter told Reuters.
Reports suggest that a London flotation could value the retailer at $5 billion. The company is hoping to cash in on the demand for investors for stocks propelled by Russia's growing middle class.
TPG owns a 49.8% stake in Lenta. Russian bank VTB, which owns 11.7% of Lenta, has previously said it wants to sell by 2015.
It is thought that when TPG first bought into Lenta in 2009 , along with VTB, they got a 35.4% stake for $115 million. This would have valued the company at around $325 million then, meaning a massive potential for return.
Lenta has 77 hypermarkets in 45 cities across Russia.
Lenta generated 110 billion roubles ($3.2 billion) in sales in 2012, which ranked it Russia's number five food retailer by revenue behind Magnit, X5, Dixy and O'Key.
© 2014 - European Supermarket Magazine by Enda Dowling
