M.Video, the country's second-biggest electronics retailer, sold $365 million of shares in an initial public offering to fund openings of new stores as sales growth outstrips capacity, the company said Thursday in a statement.

Investors bought 52.5 million shares, or a stake of about 30 percent, for $6.95 apiece, the company said. The retailer had offered the shares in a range of $6.75 to $7.25.

M.Video will get about $203 million from the sale, with the rest going to owners, including majority stakeholder and co-founder Alexander Tynkovan. M.Video plans to use the funds to add outlets such as the superstores it opened recently in Kursk, Perm and Nalchik. Russian consumer-electronics sales may rise about 15 percent annually through 2010, according to Renaissance Capital.

"They have a very strong management team and a strong quality brand, so they need to continue with their aggressive expansion plan," said James Beadle, of Pilgrim Asset Management. "There is plenty of scope for any retail company to expand successfully in Russia."

All the shares on offer were sold by M.Video's owners, who used some of the money raised to purchase 30 million new shares at $6.75 apiece, M.Video said.

Tynkovan will keep a stake of more than 50 percent, M.Video has said. The rest of the stock is owned by his brother Mikhail, a board member; general director Pavel Breyev, both of whom were co-founders of the chain; and Alexander Zayonts, also a board member.