The international sanctions imposed on Russia back in 2014 appear to be a fading memory as two Russian companies are preparing to list in the US. We're talking about Vkus Vill (Russia's version of Whole Foods) and Saint Petersburg Stock Exchange (SPB Exchange). Vkus Vill is expected to list its shares on the Nasdaq in early 2022 at an estimated valuation of $3-5b, while SPB Exchange has already filed paperwork with the SEC (and may list later this year) at an estimated valuation of $2b.
SPB's decision comes amid a boom in the exchange's number of individual investors. In August, the exchange tripled its number of accounts compared to 12 months ago. The figure now stands at more than 850,000 active users.
Vkus Vill's decision follows a period of sustained growth. The company increased its revenue by 984 times in the past nine years — that's a 115% CAGR. Vkus Vill is now amongst Russia's ten largest retailers. Despite Covid-19 lockdowns, its revenue in 2020 increased 38%, mainly thanks to the company's focus on e-groceries.
Why it matters
The upcoming listings of Vkus Vill and SPB follow a record year for Russian companies, which have issued the largest volume of stocks in five years (around $6b). In November 2020, one of Russia's largest online retailers, Ozon Group, filed on the NYSE at a valuation of $1b.
