PJSC Carsharing Russia completes the collection of applications for the IPO on the Moscow Exchange
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The book of applications of Carsharing Russia (Delimobil brand) for the initial public offering (this is the first IPO of 2024), according to market participants, has already been oversubscribed by three to four times. Next week the placement price is expected to be determined and secondary trading begins. Experts consider the company’s current valuation to be relatively high and, taking into account the small free float, do not rule out sharp fluctuations in quotes in the first days.
PJSC Carsharing Russia (provides services under the Delimobil brand) on Monday, February 5, completes the collection of applications as part of the initial public offering of shares on the Moscow Exchange. According to one Kommersant source on the stock market, the book was oversubscribed three times. “At first, the collection of applications was difficult; only by the beginning of the third day did the organizers manage to sign the book at the upper limit. In the following days, the situation improved, including due to the more active participation of portfolio managers,” notes Kommersant’s interlocutor. Another Kommersant source talks about four times oversubscription. “By the end of the week, the organizers began to target a price of 265 rubles,” said the manager of one of the stock funds.
The IPO price range was set at RUB 245. up to 265 rub. per share. Thus, the company’s capitalization is estimated at 39.2–42.4 billion rubles. excluding additional issue. The volume of the additional issue is 48 million shares. However, the company expects to attract no more than 3 billion rubles, so the number of outstanding shares will not exceed a quarter of the additional issue. The start of placement on the Moscow Exchange (technical) is February 6.
Almost all portfolio managers interviewed by Kommersant said they intended to take part in the IPO. One of Kommersant’s interlocutors notes: “In the first half of January, the issuer set capitalization guidelines in the amount of 50–60 billion rubles, which exceeded global analogues.” After the issuer agreed to a 20 percent reduction in the placement price, Kommersant’s interlocutor decided to participate in it.
This is Delimobil’s second attempt to go public. In the fall of 2021, it was planned to place it on two platforms – on the NYSE and the Moscow Exchange. At that time, the company planned to raise $200–240 million with a business valuation of $760–912 million. However, the placement did not take place “for market reasons.”
According to IFRS reporting, the revenue of Carsharing Russia for the nine months of 2023 amounted to 14.54 billion rubles, an increase of 11% over the year. Adjusted EBITDA increased by 74% to RUB 4.48 billion. Net profit – 1.4 billion rubles. versus RUB 91 million a year earlier. At the end of the reporting period, net debt reached 19.88 billion rubles, more than half was debt to leasing companies.
This time the company is valued quite expensively, experts say. Delimobil’s multiple valuation looks quite high, like that of a typical “growth company,” says Sergey Shemyakin, head of the portfolio solutions department at Go Invest. “If we compare it with its analogues on the market, in particular with VUSH Holding, then according to most multipliers the car sharing company looks more expensive, and its EBITDA Margin is lower,” he notes. The average P/E of the Russian market is close to 7, taking into account the potentially growing market, Delimobil can be estimated at a P/E of about 15, which looks quite expensive, notes Capital Lab partner Evgeniy Shatov. “Especially if we take into account the risks inherent in the issuer: high debt burden (Net Debt/EBITDA – 3.5), high rates in the economy, the price situation in the car market remains prohibitively high, high competition, large amounts of leasing payments,” the expert lists . In addition, the risks of an IPO of a carsharing company are associated with competition within the sector, primarily with Yandex and Sberbank, Mr. Shemyakin points out.
How the shares behave at the beginning of trading will depend on the final allocation, but at the beginning of trading, as a rule, many clients seek to sell their securities, which can provoke a price drop, Mr. Shemyakin noted. “It should also be taken into account that free float is expected to be 10%; this is a small volume, which can lead to increased volatility of quotes,” notes Mr. Shatov. Finam Financial Group analyst Leonid Delitsyn also points out that at least two more IPOs are expected in February. “Investors have more choice and will diversify their portfolios. There will be no rush demand for shares of any one company,” he believes. This situation will not contribute to the growth of Delimobil stock prices. However, Mr. Delitsyn points out: “Funds have been reserved to stabilize quotes.”
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