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Russian retailer X5 separates digital businesses, eyeing IPO

MOSCOW, June 24 (Reuters) - Russia’s largest food retailer X5 has created a separate entity for its digital businesses, the company said on Thursday, paving the way for the new entity to go public.

X5 is discussing plans for an initial public offering (IPO) of its online business, which accounted for just 1% of the group’s total sales in 2020 but is growing fast, with transaction volumes rocketing 347% last year.

“The company is considering several promising options for further development, including both attracting investors on the open capital market, investments through strategic partnerships, and independent development within X5,” the company said in a statement.

The digital businesses include online shop Perekrestok Vprok (Perekrestok.ru), the express delivery service for X5’s Pyaterochka and Perekrestok stores, and Okolo, a delivery service it launched last year.

X5 said it planned to provide more details on strategic options for its digital business development within a year. (Reporting by Alexander Marrow Editing by Mark Potter)

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