In a notable move, Russian men’s clothing chain Henderson has triumphed in its Moscow initial public offering (IPO), securing an impressive 3.8 billion roubles ($40.8 million) and surpassing initial market value estimates. The retailer, with 159 stores across 64 Russian cities and Armenia, has strategically benefited from the exit of numerous foreign retailers following geopolitical events.
The oversubscribed IPO, marked by robust demand from retail and institutional investors, saw the share price reaching the upper end of the indicative range at 675 roubles each. Post-initial trading fluctuations, shares settled at approximately 650 roubles.
Henderson successfully raised 3 billion roubles through the issuance of 4.4 million shares. Alongside a stabilisation package, founder Ruben Arutyunyan’s sale of 300 million roubles’ worth of stock brought the total offering size to 3.8 billion roubles, resulting in a free float of 13.9%. The funds generated are earmarked for expansion initiatives, including opening new stores and refurbishing existing ones.
Founder Ruben Arutyunyan expressed gratitude for the trust placed in the fashion house, stating, «It is very nice that millions trust a fashion house and tens of thousands trust the company enough to become shareholders.»
Henderson’s success comes against the backdrop of foreign retailers exiting Russia due to geopolitical tensions, reshaping Moscow’s retail landscape. This achievement is significant in the Russian market, which has experienced limited share listings since the onset of geopolitical conflicts. Henderson’s triumph follows other recent offerings, including tech firm Astra, which raised approximately $36 million in a Moscow IPO, and gold miner Uzhuralzoloto, currently planning its listing. Explore the success of Henderson’s IPO and its impact on the evolving Russian retail scene.
