Podorozhnik, Russia’s coffee chain to launch Initial Public Offering to raise fund
August 28 - 2021
Coffee Geography Magazine
Podorozhnik, a popular coffee chain mainly located in the vast Siberia region plans to raise USD$25.79 million during the initial public offering on the Saint-Petersburg Exchange in September, according to the statement issued by the company’s president, Tatyana Fomina. The company expanded most of its coffee shops in Siberian regions of Kemerovo , Novosibirsk and plans to penetrate other markets in the east where the big cities are located with well known coffee culture imported from Berlin and Paris. The IPO is expected to kick off on Sept. 14, offering shares at 1,000 roubles ($13.58) per share on Russia’s second-largest stock exchange.
It currently has 159 coffee shops with the prospect to expand in remote cities of ltai,Krasnoyarsk, Omsk and Tomsk to reach in total of 500 outlets once the fund is secured for the expansion plan.
“We want to grow by three folds at least. Now we have 159 branches, we’re planning to have around 500 in short term” said senior vice-president, Oksana Dunaevskaya.
Russia has proven its love for coffee with 16% growth in the number of cafes last year to surpass 4000 ensuring to consume more coffee than France. The Russians are now well accustomed to drinking coffee made with high quality Arabica coffee as roasting companies blend to find the right flavors for different groups of customers.
Foreign investors are eager to join many of the IPO’s in Russia as the sanction imposed by the U.S. and Europe is expected to be eased to revive their own economy which is damaged by Covid-19 pandemic. The country is seeing the booming IPO market this year reaching USD $10 billion compared with less than $2 billion in 2020.