عربي English Türkçe اردو فارسى
Logo
Latest News
Fashion

Russian Jeweler Sokolov Plans US IPO as Revenues Double

Artem Sokolov, managing partner and co-owner of Sokolov Jewelry poses in Moscow, Russia November 18, 2021. Picture taken November 18, 2021. (Reuters)
Artem Sokolov, managing partner and co-owner of Sokolov Jewelry poses in Moscow, Russia November 18, 2021. Picture taken November 18, 2021. (Reuters)
TT
TT

Russian Jeweler Sokolov Plans US IPO as Revenues Double

Artem Sokolov, managing partner and co-owner of Sokolov Jewelry poses in Moscow, Russia November 18, 2021. Picture taken November 18, 2021. (Reuters)
Artem Sokolov, managing partner and co-owner of Sokolov Jewelry poses in Moscow, Russia November 18, 2021. Picture taken November 18, 2021. (Reuters)

Russian jeweler Sokolov is planning a dual listing in New York and Moscow in 2023, its co-owner told Reuters, betting on strong revenue growth and the development of its retail network as it joins a raft of Russian companies pursuing market debuts.

Russian initial public offering (IPO) activity has picked up as the economy improves after the COVID-19 pandemic last year and as concerns over more Western sanctions fade, although a couple of postponements have marred the listing spree.

"In the spring of 2022 we want to do a pre-roadshow for a year... and we plan to enter the market in the United States and Moscow in 2023," Artem Sokolov, managing partner and co-owner of the almost 30-year-old jewellery network, told Reuters.

"In the United States we are considering both the New York Stock Exchange and Nasdaq," he said. "To have good free float and liquidity, we need to raise about $500 million."

Sokolov, which manufactures jewelry and operated as a wholesaler for many years, tripled its market share with the launch of its brand in 2014 and soon after moved into retail, which now accounts for almost half of revenue. It expects to have 350 stores by the end of 2021, up from 20 in 2019.

Sokolov's January-September revenue was around 20 billion roubles ($275 million), with full-year revenue expected to reach around 30 billion roubles, more than doubling year on year.

The company did not disclose profit data, but Sokolov said: "We have always been profitable. Now we have exponential development of revenue and profit."

Sokolov forecast that the company should become Russia's jewelry market leader by retail revenue, overtaking domestic rivals Sunlight and 585 Gold in 2023. He views Swarovski and Pandora as the company's closest international competitors.

The group also sells jewellery on a mobile app, which has one million monthly active users. It has three million monthly active users on its website.

"We will fight to be the number-one mobile jewelry application in the world with our own retail and production," he said.

Sokolov is also planning to open 15-20 stores in Kazakhstan in 2022 and will launch a retail network in Germany next year.

Most Viewed

 
 
Fashion

Sources: Shein Weighs Sale of Less Than 10% of Company in London IPO

A mannequin with a Shein sign stands in an office of a lingerie maker at WeMet Industrial Park, in Guanyun county of Lianyungang, Jiangsu province, China November 25, 2024. REUTERS/Florence Lo
A mannequin with a Shein sign stands in an office of a lingerie maker at WeMet Industrial Park, in Guanyun county of Lianyungang, Jiangsu province, China November 25, 2024. REUTERS/Florence Lo
TT
TT

Sources: Shein Weighs Sale of Less Than 10% of Company in London IPO

A mannequin with a Shein sign stands in an office of a lingerie maker at WeMet Industrial Park, in Guanyun county of Lianyungang, Jiangsu province, China November 25, 2024. REUTERS/Florence Lo
A mannequin with a Shein sign stands in an office of a lingerie maker at WeMet Industrial Park, in Guanyun county of Lianyungang, Jiangsu province, China November 25, 2024. REUTERS/Florence Lo

Fast fashion retailer Shein is considering asking UK regulators to waive listing rules that require at least 10% of its shares to be sold to the public in its planned London flotation, two people with knowledge of the matter said.
The company is exploring this option to facilitate its IPO, one of the people said, according to Reuters.
If granted, it would likely be the first time that a company in London has been allowed to list below the recent 10% rule.
Singapore-headquartered Shein, which sells $5 tops and $10 dresses mostly made in China, in June filed confidentially with the Financial Conduct Authority (FCA) for a London listing.
However, Britain's financial regulator is taking longer than usual to approve its application, Reuters reported last week.
The people declined to be identified as they were not authorized to speak to the media.
Shein declined to comment.
Shein was valued at $66 billion in a fundraising round last year. A 10% flotation at that valuation would make the IPO worth $6.6 billion. The biggest European IPO this year was perfume and fashion company Puig's $2.9 billion deal, according to Dealogic.
The current valuation of Shein and how much it is looking to raise via the London listing was not immediately known.
London changed its listing rules in 2021 to boost the attractiveness of the venue for companies. It cut the proportion of shares an issuer is required to float to 10% from 25%, reducing potential barriers for large IPOs, the FCA said at the time.
In July, Britain ushered in the biggest reform of company listing rules in more than three decades to help it compete more effectively with New York and the European Union for new issuers.
Shein began to explore a listing on the London Stock Exchange early this year, Reuters reported in May, citing sources. The China-founded company's original plan to list in New York was derailed after opposition from US lawmakers.
Shein is also waiting for China's securities regulator to approve its plans for a London IPO, Reuters previously reported. Its revenues are expected to hit $50 billion this year, up 55% from 2023, according to Coresight Research.