Qiwi, a Russia-based operator of cash payment terminals and electronic wallets, plans to raise up to $248m in its US flotation.
It will list 12 million B shares at between $16 and $18 each on the Nasdaq stock exchange, with a further 1.8 million shares available if demand is high.
Shareholders include UK-listed internet services provider Mail.ru Group (21.4%) and Japan-based financial services group Mitsui (14.9%) own A shares which will have “substantial control” over the company even though Qiwi’s regulatory filing said they could be competitors.
Qiwi said in its filing: “Mail.ru and Mitsui make investments in companies and may, from time to time, acquire and hold interests in businesses that compete directly or indirectly with us…. In particular, Mail.ru operates an electronic payment business, Money@Mail.ru, a direct competitor of Visa Qiwi Wallet, which may result in them being provided with business opportunities instead of us.”
After the flotation, Mail.ru will own 16.3% of the shares but 20.6% of the votes while Mitsui will own 11.5% of the shares and 14.5% of the votes. The company executives and directors will own 47.1% of the shares and 58.9% of the votes through the A shares.
In January, Qiwi reportedly intended to invest in start-ups that could help the group develop its own offers. Qiwi, which is named after the Kiwi bird, will invest up to $1m in each start-up. The overall amount of capital it will dedicate to this venture activity, however, has not yet been determined.
Investment banks JP Morgan and Credit Suisse are lead underwriters to Qiwi’s initial public offering, with legal counsel from Skadden Arps Slate Meagher and Flom and White & Case. The company reports $27m in net profit on $293m in revenue for last year.