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SSA - AFK Sistema PAO News Story

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Mid Cap
Market Cap £1.97bn
Enterprise Value £9.20bn
Revenue £6.57bn
Position in Universe 272nd / 1819

UPDATE 1-Detsky Mir co-owners cuts stakes in Russia's first pandemic share sale

Wed 17th June, 2020 10:22am
* Detsky Mir share offering reopens Russian equity market
    * Co-owners raise $158 mln, free float increases to 75%
    * Sistema, Detsky Mir shares up on Wednesday

 (Adds details, background)
    By Nadezhda Tsydenova and Katya Golubkova
    MOSCOW, June 17 (Reuters) - Russian conglomerate Sistema
 AFKS.MM  and the Russia-China Investment Fund (RCIF) have cut
their stakes in children's goods retailer Detsky Mir  DSKY.MM 
in Moscow's first share offering since the coronavirus pandemic
    Sistema and RCIF said they had raised about 11 billion
roubles ($158 million) by selling 117.8 million shares, or
15.94% of Detsky Mir, at 93 roubles per share, reducing their
stakes in the retailer to 20.38% and 4.62% respectively.
    Share offerings globally have been few and far between since
the pandemic hit earlier this year though investors are now
cautiously returning to markets after ditching assets in
previous months.*:nL4N2DT3TQ
    The Russia-China Investment Fund (RCIF) is a joint venture
between the Russian Direct Investment Fund (RDIF) and China
Investment Corporation.
    RDIF Chief Executive Kirill Dmitriev said in a statement
that demand exceeded the offering fivefold, with over 60% of the
shares subscribed by top investment funds from Europe, America
and Asia. He did not name the funds. 
    "RDIF jointly with Sistema has opened the Russian market to
foreign investors after the coronavirus epidemic. The placement
of Detsky Mir shares was the first successful placement of
Russian equities in 2020," Dmitriev said. 
    Detsky Mir shares were trading at about 99 roubles on
Wednesday, up by more than 2% while Sistema was up 3.6% at 17.6
roubles. The share offering increased the free float in Detsky
Mir to 75%.
    Many Russian companies that were initially targeting initial
public offerings this year have pushed back their plans as the
market was in turmoil due to coronavirus, according to their
executives and bankers.*:nL5N2CC6M3 
   Credit Suisse, Goldman Sachs, Sberbank CIB, VTB Capital and
Alfa Bank arranged the Detsky Mir deal. 
  ($1 = 69.5060 roubles)

 (Reporting by Nadezhda Tsydenova; Writing by Maria Kiselyova
and Katya Golubkova; Editing by Tom Balmforth and David Clarke)
 ((; +7 495 775 1242; Reuters
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