Ozon Eyes $750M IPO As ‘Russia’s Amazon’ Seeks Cash For Expansion

Ozon, the Russian online retailer, is upping the ante and boosting its planned IPO by half, as it pushes closer to making its debut as a public company.

With eCommerce surging amid the coronavirus pandemic, Russia’s answer to Amazon is now weighing plans for a $750 million IPO in the U.S. to raise money for expansion back home, Reuters reported, citing three financial market sources.

That’s up from a previous target of $500 million, an increase of $250 million, as Ozon’s revenue soars amid a shift to online shopping. Ozon’s business has gone on a roll during the pandemic, with revenues increasing 70 percent during the first nine months of 2020, the news service reported.

The next developments will hinge on the U.S. Securities and Exchange Commission (SEC), which is vetting the company’s plans for an IPO.

In a filing with the SEC on Nov. 2, the Russian online retail giant stated that it is seeking to list its American depositary shares (ADSs) on the Nasdaq Global Select Market.

If federal securities regulators give the green light, an official announcement – including the size of the IPO – could be forthcoming next week. That could pave the way for a $750 million IPO after the Thanksgiving holiday and before the end of November, one of the sources told Reuters. If the SEC decision drags out, however, the IPO may not happen until next year.

Ozon may also list on the Moscow stock exchange, though it would not involve additional shares, the news service has previously 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, Reuters reports.

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.