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. Last Updated: 07/27/2016

Rosinter Plans IPO as Dining Booms

Boris KavashkinRosinter, which runs brands such as Il Patio and TGI Friday's, has a 20 percent share of Moscow's dining market.
Restaurant chain Rosinter, whose outlets serve hungry crowds from Siberia to Central Asia, will become the first company from Russia's booming dining sector to float publicly when it goes to the market in May, banking sources said.

The sources said investment bank Renaissance Capital had the mandate to advise the company on the planned $100 million-plus IPO, which will give investors access to Russia's booming consumer sector.

A Rosinter spokeswoman declined to comment. Officials at Renaissance Capital also declined comment.

The consumer business is the fastest-growing industry in Russia, a market of 143 million people that analysts say has doubled in the past 10 years and will double again in the next five years. Russian retail sales grew 13 percent to $329 billion in 2006, with Muscovites accounting for one-third of that, government data show.

Rosinter, which posted a 2006 turnover of $205 million, up 30 percent over 2005, owns or operates over 200 eateries in Russia and the former Soviet republics under seven brands including T.G.I Friday's, Santa Fe, Il Patio and Planet Sushi.

Rosinter also owns Rostiks, the leading chicken fast-food brand in Russia, where its signs of a cheery chicken brandishing a knife and fork are ubiquitous. Rostiks represents the KFC brand of U.S. Yum! Brands in Russia.

Rosinter, with a 20 percent market share in Moscow, serves sushi, pizza, burgers as well as Russian staples, such as pelmeni, in the casual, inexpensive segment of the dining market analysts say is growing by around 20 percent per year.

Analysts estimate the restaurant market in Moscow is worth $4.5 billion, one-third of it in casual dining.