NOVOSIBIRSK, Russia--(BUSINESS WIRE)--On August 10, the Board of Directors of OR PJSC, the parent company of Obuv Rossii Group (MOEX: OBUV), the first publicly traded company in the Russian fashion retail, made a decision to increase the Company’s share capital by placing additional shares worth RUB 2.8 bln (hereinafter “additional issue”). Funds from the additional issue will be used to implement the Company’s strategy for the business’s digital transformation and financial services development.
It will be the public offering with the pre-emption right for Company’s shareholders to buy the shares. The number and the category of the placed shares: 28,264,000 ordinary shares, which is 24% of the previously placed ordinary shares. The par value is RUB 100 per share. The price, terms, and other placement characteristics will be determined by the OR Board of Directors later.
The aims of the additional issue are the following: to finance further development of the Company and to implement the new business model – a unique retail format including a retail network, a marketplace, and an online platform; to further develop financial services including cash loans. Considering the current economic situation and the history of OR JSC’s listed stock quotation, OR PJSC will hold follow-on offering only if the share price is significantly higher than the existing levels, and at least RUB 100 per share.
“The decision to issue additional shares stems from the change of Company’s strategy. We have been implementing this strategy’s main elements since the end of 2019. While dealing with suppliers, we have transferred to the marketplace model; we are reformatting our stores to be mini general stores. We will prioritize the integration into the logistic infrastructure of Russian e-commerce market and development of our own online stores,” comments Anton Titov, CEO of Obuv Rossii Group.
In 2017, OR PJSC held an IPO on MOEX raising RUB 5.9 bln.
About OBUV ROSSII (http://obuvrus.com)
Obuv Rossii Group is a nationwide retail chain, the first publicly traded company in the Russian fashion retail. Obuv Rossii was established in 2003, it is headquartered in Novosibirsk with a representative office in Moscow.