Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Juice Maker's Share Price Up 5% in First Day on Market

Shares in Russia's leading juice maker, Lebedyansky, rose 5.3 percent on Friday in the first day of trading on strong investor appetite for retail shares.

Lebedyansky, which produces the popular "Ya," "Tonus" and "Fruktovy Sad" juices, said in a statement that it had set a price of $37.23 per share in its initial public offering.

By late afternoon the company was trading at $39.20 on the RTS.

The oversubscribed IPO valued the firm at $760 million, and the IPO raised $151 million, the company said in a statement.

The Russian stock market is dominated by energy shares, but investors are keen to snap up shares of firms driven by strong consumer growth.

The company had to increase the number of shares on offer by more than 714,000 to about 4 million ordinary shares, or 19.9 percent of capital. All the shares came from existing shareholders.

The shares will be traded on the RTS and the MICEX.

Growing consumer demand recently prompted one of the country's biggest conglomerates, AFK Sistema, which controls Russia's No. 1 mobile phone company and has retail interests, to debut in London last month, raising $1.56 billion.

Sedmoi Kontinent, one of the country's biggest grocery chains, raised 2.3 billion rubles ($83.8 million) in an IPO in November. The only other traded Russian food company is Lebedyansky's rival, Wimm-Bill-Dann. The company's stock, which listed in New York in 2002 at $19.50, closed at $17.27 on Thursday.

Lebedyansky, which also produces baby food, has increased its market share to a current 27.4 percent by eating away at Wimm-Bill-Dann's market share, which is at 25.4 percent, according to Business Analytica research firm.

Lebedyansky's revenue to international accounting standards was $276.3 million in the first nine months of 2004, a 37 percent rise over the same period in 2003.