Russian eCommerce Marketplace Ozon Eyes Nasdaq IPO

The eCommerce marketplace Ozon, considered to be Russia’s answer to Amazon, has filed for an initial public offering (IPO) in the United States.

In an SEC filing made on Monday (Nov. 2), Ozon called itself Russia’s leading online shopping destination, stating that its gross merchandise value (GMV) has grown by 142 percent during the first nine months of 2020 compared with the same period in 2019, boosted in part by social distancing restrictions put in place by the Russian government in response to the COVID-19 pandemic. It added that the Russian eCommerce market has grown by 41 percent during the same period.

The company is seeking to list its American depositary shares (ADSs) on the Nasdaq Global Select Market. Ozon said it plans to use proceeds from the transaction to expand its business, which is still operating in the red.

Underwriters of the deal include Morgan Stanley, Goldman Sachs, Citigroup, UBS Investment Bank, SberCIB, VTB Capital and RenCap, according to the F-1 filing.

The IPO could raise at least $500 million. Ozon may also list on the Moscow exchange around the same time it debuts on the U.S. markets. The Moscow listing would not offer any additional shares, according to a Reuters report on Tuesday (Nov. 3).

Reports surfaced earlier this month that the Russian e-tailer was eyeing an IPO. It would be the first Russian company to debut on the U.S. markets since Headhunter in 2019.

Back in June, Reuters reported that Amazon and SoftBank Corp. were in talks with Sistema, Ozon’s leading stockholder, to buy Ozon, and that Amazon CEO Jeff Bezos had met with Ozon CEO Alexander Shulgin to discuss a potential deal.

“The interest to Ozon among foreign investors is very high,” Vladimir Evtushenkov, Sistema’s majority owner and chairman, told reporters after Sistema’s annual shareholder meeting, according to Reuters. “I can tell you that this is the only company in Russia at which Amazon was looking from the participation point of view.”

In March, San Francisco-based Princeville Capital announced a $50 million investment in Ozon. Princeville said the fundraising was included in a previously disclosed transaction in which Ozon received $100 million from Sistema and Baring Vostok, both existing shareholders, to aid with growing its technology and logistics infrastructure. The investment came through a convertible loan that can be turned into equity.