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Russian eCommerce Marketplace Ozon Raises $1 Billion In IPO

Russian eCommerce Marketplace Ozon Raises $1 Billion In IPO

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Russian eCommerce Marketplace Ozon Raises $1 Billion In IPO

Russian eCommerce marketplace Ozon raised nearly $1 billion in its debut on the New York Stock Exchange on Tuesday. 

Ozon, founded in 1998, is one of the oldest eCommerce platforms in Russia and currently accounts for 7 percent of online sales in the country, with more than 11 million active buyers on its platform. 

While Ozon’s listing values the company above the initial guidance, the company’s $990 million initial public offering (IPO) is the biggest Russia has seen in the last three years, Reuters reported. 

The company had priced its initial offering at $30 per depository share, which was above the target range of $22.50 to $27.50. The company decided to increase the number of offered shares from an initial 30 million in response to the strong demand. 

This reduced the stake of Russian conglomerate Sistema and Baring Vostok Capital Partners in the company, both of whom owned a 45 percent stake before the listing, to 33.1 percent each.

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Ozon’s IPO comes at a time when a growing share of Russian consumers are turning to eCommerce platforms for their shopping needs, especially since the start of the pandemic. eCommerce grew by 51 percent in the first half of 2020, compared to the year before.

To better compete, Russian retailers have been focusing on cutting delivery times across the country’s 11 time zones. The country’s eCommerce market is expected to further grow by another 34 percent this year and will be valued at $28 billion. 

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