Russia-based online marketplace Ozon will go public on the Nasdaq Global Select Market today in a $990m initial public offering that will achieve an exit for diversified conglomerate Sistema.
The company increased the number of American depositary shares – each representing one common share – in the offering from 30 million to 33 million and priced them at $30.00 each, comfortably above the $22.50 to $27.50 range it had set.
Sistema and another Ozon shareholder, private equity firm Baring Vostok, are each buying $67.5m of additional shares in the company through a concurrent private placement. The IPO price values it at approximately $5.57bn.
Ozon operates an e-commerce platform with 50 million monthly active users that connects buyers of a wide variety of consumer goods to a network of some 18,000 merchants. It increased revenue from $39.1m to $66.6m year on year in the first nine months of 2020, with its net loss narrowing slightly to $12.9m.
Sistema and mobile network operator Mobile Telesystems (MTS) each paid $75m for a 10.8% stake in the company in a 2014 deal that likely allowed e-commerce firm Rakuten, Ru-Net and Alpha Associates to exit after investing $100m alongside Index Ventures three years earlier.
The 2014 round boosted Ozon’s overall funding to $270m, its earlier backers also including networking technology producer Cisco and Holtzbrinck Ventures, which both joined Index Ventures in an $18m round in 2007.
MTS sold an 18.7% share of Ozon to Sistema in February 2019 at a $634m valuation, before Ozon raised $154m from Sistema and Baring Vostok two months later. Sistema, Baring Vostok and Princeville Global added $150m in convertible note financing in April this year.
Sistema’s stake is being diluted from 45.2% to 37.3% while Baring Vostok’s will be cut from 45.1% to 37.2%. Index Ventures will come out with a 4.8% share and Princeville Global 4.5%.
Underwriters Morgan Stanley, Goldman Sachs, Citigroup Global Markets, UBS Securities, Sberbank CIB (UK), VTB Capital and Renaissance Securities (Cyprus) have 30 days to buy up to 4.95 million more shares if they choose, potentially lifting the size of the offering to nearly $1.14bn.
