Microfinance company Seimer is going to raise 3 billion rubles during its IPO

Microfinance company Seimer is going to raise 3 billion rubles during its IPO

The largest Russian microfinance company, Seimer, is ready to place securities worth RUB 3 billion as part of its IPO. There are several goals: generating income for the owner, simplifying new acquisitions and motivating employees. According to experts, the company assessed the experience of previous placements and did not overestimate its valuation. In their opinion, the IPO will be in demand, including from institutional investors. But the microfinance segment carries risks that depend on regulation and the economic situation.

Multifunctional complex "Zaymer" announced on an IPO on the Moscow Exchange. Trading is expected to begin in April. According to the head of Zaimer, Roman Makarov, the company itself does not need to attract financing: “Historically, the main source of business financing was equity capital. We plan to conduct an initial placement on the 100% cash out principle. The funds raised will go to the shareholder (Sergey Sedov.— “Kommersant”), he places a small share and remains the controlling shareholder."

3 billion rubles

will be offered to investors by the owner of the Seimer multifunctional complex Sergey Sedov as part of the company’s IPO on the Moscow Exchange, which is scheduled for April 2024.

Also among the goals of the IPO, Roman Markov named the possibility of structuring M&A transactions and implementing a management incentive program through shares. “We will be able to purchase any business by paying with our own shares,” the company explained. The company promises to allocate up to 50% of net profit for dividends (see “Kommersant” dated January 16).

MFC "Zaymer" is the leader of the Russian microfinance market. In addition to the company of the same name, the group includes Dopoluchkino MCC and Fintekhrobot LLC. According to IFRS reporting for 2023, the volume of loans issued amounted to 53 billion rubles, exceeding the 2022 figure by 2.2%. Net profit increased by almost 8%, to 6.1 billion rubles.

Seimer says that the company has already received indications from institutional investors for approximately 70% of the potential IPO volume (that is, just over 2 billion rubles).

Of the five large portfolio managers interviewed by Kommersant, only two confirmed their interest in placing Seimer.

“We plan to participate, but for a small amount,” said one of the managers. “The proposed valuation is also interesting given the business growth from M&A transactions,” says another Kommersant interlocutor who expressed interest in the IPO.

According to Alfa Bank analysts, the indicative range of the fair value of 100% of Seimer is RUB 37.6–43.2 billion. Managing director of the Dmitry Donskoy financial group, Dmitry Kurbatsky, estimated Seimer at 42 billion rubles, that is, seven annual profits.

According to Mr. Kurbatsky, retail investors are showing high interest in IFC's IPO.

“Zemer is the largest IFC, and this area is also less regulated than banks or the leasing industry,” explains the expert. “But the risks for investors are more significant than when placing large leasing companies and banks.” One of the portfolio managers who does not plan to participate in the placement explained that he “is not attracted to the company’s business.”

Seimer could take into account the experience of placement of another participant in the microfinance market, which took place at the beginning of last summer. "Smarttekhgroup" (parent company of MFC "Karmani") spent IPO at 3.16 rubles. per share. However, in secondary trading (except for the first day), the shares traded significantly lower; in December 2023, the discount reached 30%. Now the securities cost 2.57 rubles, almost 19% lower than the offering price.

“In any IPO, there is a risk that the valuation with which the company exits will not coincide with market expectations,” clarifies Roman Sokolov, director of the corporate finance department at Digital Broker.

But almost all other issuers that went public in 2022–2024 are trading above their offering price.

“The company’s publicity can become an additional driver for further business consolidation, but it is not a 100% guarantee of growth,” notes Gennady Fofanov, president of the InvoiceCafe investment platform. “We are talking about the microfinance sector segment, which is demonstrating significant growth, but is directly dependent on regulatory superstructures and from the general economic agenda."

Ksenia Dementieva, Vitaly Gaidaev

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