Foxtrot and Comfy plan IPOs in 2013

2012-01-12



Two top consumer electronics companies within the Ukrainian retail market are planning their initial public offerings (IPO) in 2013: Foxtrot (228 stores) and Comfy (78 stores). With regards to this, in 2012 the companies are planning to focus on preparations for entering stock exchanges either in London (LSE) or Warsaw (GPW). However, due to the uncertainty of conducting business, which is connected to the situation of the global economy, the Ukrainians' plans could be changed.

In 2012, the companies plan to focus their activities on developing their corporate governance processes, undergoing financial and legal auditing to insure transparency for investors, as well as improving their financial results. Both companies could sell up to 30% of their shares, according to Aleksandr Kuksin, the director of Kreston GCG business advisory company.

According to the head of Foxtrot, Uve Klenka, the company is considering on developing its wholesale business in other countries, such as in Georgia, as part of its strategy for preparing for IPO. Furthermore, Mr. Klenka does not exclude potential M&A deals. Comfy is aiming to become IPO-ready by the end of 2013, the company announced.

In November 2011, Comfy announced its plans to expand its chain by 111 stores by late 2012, and to reach a turnover of $3bn by late 2015 (actual financials not disclosed), as Retail Update Russia has informed. In turn, the Foxtrot Group (the full name of the store chain is "Foxtrot. Tekhnika dlya doma") increased its net revenues by 36% year on year to $898.8m in the 2010 financials (ended on 31 March 2011).