Fix Price will re-register its parent structure from Cyprus to Kazakhstan

Shareholders of the Fix Price network approved the re-registration of the company’s parent structure (Fix Price Group PLC) from Cyprus to Kazakhstan, to the territory of the Astana International Financial Center. The procedure itself is planned to be completed in the second half of 2024, while the retailer plans to maintain the listing of global depositary receipts (GDRs) on the London Stock Exchange, according to its message.

Redomiciliation will help eliminate some of the difficulties associated with the payment of dividends to the company’s Russian shareholders, which stopped in the spring of 2022 due to restrictions on currency movement, explains a Fix Price representative. For this reason, the retailer was unable to pay dividends for 2021 (their amount was supposed to be 5.8 billion rubles). Last year, the company did not raise the issue of dividends at all. In addition, according to its representative, Kazakhstan is among the top 3 largest markets for Fix Price, where 262 stores are already operating as of the end of September. Also recently Fix Price Group It is also listed on the Astana Stock Exchange.

Kazakhstan is a very convenient jurisdiction from the point of view of banking, says General Director of Infoline-Analytics Mikhail Burmistrov. He recalls that redomiciliation to this country is popular among Russian companies. For example, the head office has already transferred there “Polymetal” This, as Burmistrov notes, allows such players to both develop business in this country and engage in regional expansion. The same Fix Price very ambitious plans not only in Kazakhstan, Uzbekistan and other neighboring countries, but also in the UAE, he recalls.

Fix Price – Russia’s largest chain of fixed price stores, was founded in 2007 by the founders of the Kopeyka chain, Sergei Lomakin and Artem Khachatryan. They control about 41% of the group through their Cypriot companies (Luncor Overseas Khachatryan and LF Group DMCC Lomakin). In addition to Russia, the company operates in nine countries. As of June 30, Fix Price had 6,039 stores in Russia and neighboring countries. At the end of 2022, the retailer’s revenue amounted to 277.6 billion rubles, EBITDA – 54.2 billion rubles, net profit – 21.4 billion rubles. (according to IFRS).