Ozon shares surge in American IPO

RUSSIA / FSU POLITICS - In Brief 24 Nov 2020 by Alex Teddy
On November 24 the Russian online retail company's shares leapt by over 33% in just a few minutes trading. This is the hottest Russian IPO in years. The company now has valuation of over USD 7 billion.Ozon is the second biggest online retailer in Russia. It aims to achieve market dominance.The NASDAQ is where Ozon has its main listing. American Depository Receipts (ADRs) were sold to investors for USD 30 each at the IPO. USD 27.5 was the highest that Ozon had expected earlier in November.Ozon has a secondary listing on the Moscow Exchange. On November 24 shares were selling for USD 41 each in the evening. That is a 37% increase on the IPO price. This was the first opportunity ordinary Russian investors had to get these shares. Russian Law forbade non-professional investors from participating in the IPO.Ozon made over USD 1 billion from the IPO and from a private share sale at the same time. The private sale was to Baring Vostok and Sistema who invested. These two companies invested in Ozon for several years.Ozon wants to broaden its logistics system. That is more than two times the company's original plan when the IPO was announced earlier in 2020.The listing is the second time since 2014 that a Russian form has listed on the US stock market. 2014 was when the Crimean Conflict caused sanctions.This IPO is the greatest valuation a Russian company has received in a stock market launch at home or abroad since EN+ listed on 2017.Ozon was founded in 1998. At first it performed poorly. 2011 new investors turned the company around. Ozon got into online retail in 2018. Coronavirus has been a huge fillip to the company. Russian e-commerce is a late starter but is due to start t...

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