Russian eCommerce Giant Ozon Files For IPO Approaching $1B

Russian online retailer Ozon is sold on the idea of launching an initial public offering (IPO) of stock in the U.S. — and raising even more cash than previously reported.

The “Amazon of Russia” filed paperwork on Tuesday (Nov. 17) calling for an IPO worth nearly $1 billion, as reported by Barron’s. According to a U.S. Securities and Exchange Commission (SEC) filing, Ozon will issue 34.5 million shares on the Nasdaq stock exchange at between $22.50 and $27.50 apiece.

Ozon’s main shareholders are the Baring Vostok investment fund and Sistema, a conglomerate controlled by businessman Vladimir Yevtushenkov, Barron’s reported. Those companies will purchase additional shares worth $135 million.

Plans for the IPO take place amid a surge in eCommerce during the COVID-19 pandemic. Previously, news reports had pegged the value of Ozon’s IPO at anywhere from $500 million to $750 million.

Ozon’s revenues increased 70 percent during the first nine months of 2020, Reuters reported. Organizers of the IPO have offered different estimates of Ozon’s market value based on the pending offering, ranging from $4 billion to $12 billion.

Ozon may also list on the Moscow stock exchange, though it would not involve the issuing of additional shares.

The eCommerce giant said it could raise as much as $949 million through the IPO, according to the SEC filing, Barron’s reported. Ozon would be one of the few Russian companies to get a listing on international stock markets in recent decades.

Even before the pandemic, Russia’s eCommerce market has seen booming sales in recent years, which has made the market increasingly attractive to other large organizations like Sberbank and China’s Alibaba, which have teamed up with internet giants Yandex and Mail.ru.

The date for the IPO has not yet been set.

Deal underwriters include Morgan Stanley, Goldman Sachs, Citigroup, UBS Investment Bank, SberCIB, VTB Capital and RenCap, according to the F-1 filing, PYMNTS has reported.