TPG’s Lenta to float on LSE

The retailer is also backed by the European Bank for Reconstruction and Development (EBRD), which holds a 21.5% stake. TPG owns 49.8% of Lenta, while VTB holds a stake of 11.7%.

All three parties are the only shareholders selling stock in the all-secondary offering. The remaining shares in the company are currently held by management and minority shareholders, with management owning a 1% stake and other shareholders owning 15.9%.

According to reports, the offering could give Lenta a market cap of more than £3bn and could raise up to £600m for its selling shareholders.

An over-allotment option has been granted by the selling shareholders, representing up to 15% of the global depository receipts sold in the offering.

Credit Suisse, JP Morgan and VTB have been appointed joint global coordinators, as well as joint bookrunners alongside Deutsche Bank and UBS Investment Bank. TPG is acting as co-manager for the flotation, while Rothschild is the financial adviser to Lenta.

TPG and VTB invested in Lenta in October 2009. According to unquote" data, the two firms acquired a 35.4% stake in the business at the time.

Founded in 1993 and headquartered in St Petersburg, Lenta currently operates a chain of 77 hypermarkets throughout 45 Russian cities. The company opened 21 new hypermarkets in 2013.

Lenta also owns 10 supermarkets located in Moscow and the surrounding region, all of which were opened last year as part of Lenta's soft launch of its new supermarket chain.

The retailer generated turnover of RUB 144.3bn in 2013, representing a 31.3% increase from 2012. Its adjusted EBITDA for the year stood at RUB 16.4bn with a margin of 11.4% – a 28.9% increase on 2012.

As of December 2013, Lenta's net debt stood at 2.4x adjusted EBITDA. The company's workforce totals 27,800 and its CEO is Jan Dunning.

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