- This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine
MOSCOW, Nov 29 (Reuters) – Geopolitics may have thwarted Russian jeweler Sokolov’s dream of a listing in New York, but plans to go public in Moscow remain firmly on the table, its co-owner told Reuters adding that international expansion plans have shifted to China from Europe.
Amid a wave of Russian initial public offerings (IPOs) over the past year, Sokolov said it plans to list in New York and Moscow in 2023. But Russia’s deployment of tens of thousands of troops to Ukraine in February prompted many companies to reconsider their IPO plans.
Now Sokolov is aiming for a listing on the Moscow Stock Exchange, most likely in the second half of 2023, entering the bond markets, securing a credit rating in Russia and preparing for an IPO, Artem Sokolov, managing partner and co-owner of the 30-year-old -old jewelry network, Reuters said.
“We have not abandoned this idea. The strategic goal is to bring the company to the public,” said Sokolov. “We’ll wait and see how the market behaves.”
At least 10 companies wanted to go public in 2022 before Russia’s IPO market stalled, but signs of life may be surfacing again. E-scooter company Whoosh said Monday it was considering an IPO.
CHINA EXPANSION
Sokolov had planned to open a retail network in Germany this year, but with the West shunning Russian companies over Moscow’s actions in Ukraine, the company is now targeting the Chinese market and hopes to open 30 to 50 stores there over the next year , this should be the case pilot project with three branches in Shanghai will be successful.
“We aim to become a prominent player in the local market within three to five years,” Sokolov said. “We learned how to open 300 stores a year, we have that skill.”
Domestically, the number of retail touchpoints is set to increase by 1,000 over the next two years from the current 400, primarily leveraging Russian raw materials and the practice of melting unsold inventory back into the original gold or silver, while keeping costs down.
In another likely boost, Pandora (PNDORA.CO) and Swarovski, which Sokolov named last year as his company’s closest international competitors, have both severed ties with Russia.
Reporting by Olga Popova Writing by Alexander Marrow Editing by Mark Potter
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