Install

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

. Last Updated: 07/27/2016

M.Video Raises Goal for IPO Up to $420M

M.Video, the country's second-biggest electronics retailer, plans to sell shares worth as much as $420 million in an initial public offering to fund expansion, the retailer said Monday in a statement.

A total of 52.5 million shares, or about 30 percent of the company, will be offered by M.Video's owners for $6 to $8 apiece, the retailer said. As much as $240 million will go to the company, after the owners, including majority owner and co-founder Alexander Tynkovan, use part of the proceeds to purchase as many as 30 million new shares.

The total share offer is larger than originally planned by M.Video, which said last week that the IPO would raise as much as $300 million. The 109-store chain aims to open more stores to increase its share of the country's $13.2 billion consumer electronics market to about one-fifth from 13 percent at the end of June.

The price range is "quite attractive," and the shares may rise when they start trading, said Yelena Suslova, an analyst at Wermuth Asset Management. Suslova estimates the company is worth about $1.2 billion.

M.Video's IPO would be the first by a Russian electronics retailer.

Electronics sales will rise about 15 percent annually through 2010 as per-capita incomes increase by more than one-fifth per year, fueling purchases of higher-quality goods, according to a report by Renaissance Capital investment bank.

M.Video trails Eldorado by sales and would be valued at as much as $1.44 billion after the IPO.

The retailer's sales may rise about 35 percent annually over the next five years and "no companies in developed markets would show such growth," Wermuth's Suslova said.