By Olga Popova
MOSCOW Feb 27 Russian hypermarket chain Lenta
has narrowed guidance for its initial public offering (IPO) to
$10-$10.25 per global depositary receipt (GDR), two banking
sources told Reuters on Thursday.
The previous guidance for Lenta's London IPO stood at
$10-$11 per GDR. Sources said order books - which will be closed
later on Thursday - were covered within the new range.
Lenta is among a number of retail companies hoping to tap
into demand from investors for stakes in consumer-oriented
businesses in Russia and follows the successful flotation of
telecoms firm Megafon in 2012 and Russian
consumer credit firm TCS last year.
The IPO comes as Russia's economy is flagging - growth fell
from an average 7 percent a year to just over one percent last
year, causing a slowdown in consumer sectors such as car sales.
Some of Lenta's rivals have seen growth rates start to slow.
The Russian rouble has also fallen on worries about
slowing growth, the tapering of the U.S. Federal Reserve's
monetary stimulus programme and upheaval in neighboring Ukraine,
liming spending activity.
Lenta first set a price range of between $9.5 and $11.5 per
GDR on Feb. 14, which implied a market capitalisation of between
$4.09 billion and $4.95 billion, with the sale of some 19
million shares or 22.1 percent of existing share capital.
Lenta has said TPG, which owns a 49.8 percent stake, will
sell some but not all its shares, as will the European Bank for
Reconstruction and Development, which holds 21.5 percent, and
Russian bank VTB, which owns 11.7 percent.
The banks advising on Lenta's IPO are JP Morgan Chase & Co
, Credit Suisse, UBS, Deutsche Bank
and VTB Capital. TPG Capital is acting as a
co-manager while Rothschild is financial adviser to Lenta.