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. Last Updated: 07/27/2016

Dixy Cuts IPO Price After Valuation

Dixy Group, the country's third-largest supermarket chain, cut the price of its initial public offering as analysts said the retailer's owners asked too much for a company that is less profitable than its competitors.

Dixy will sell stock in a range from $14.40 to $15.80, valuing the company as high as $948 million, according to a note from bankers involved in the sale. That is down from a previous range of $16.50 to $22.

Oleg Leonov, 38, the retailer's founder and controlling shareholder, is buying shares in the IPO, while Citigroup is selling almost all of its stake. Dixy's profit margin last year was below 1 percent, less than X5 Retail Group, the nation's biggest grocery chain.

"They overvalued themselves," said Victoria Grankina, an analyst at Troika Dialog. "Dixy deserves a discount to retailers like X5. It has a smaller network of stores and less market share."