Sportmaster looks to float in London in spite of turbulence

City A.M. Reporter
RUSSIA’S largest sports equipment and clothes retailer Sportmaster is considering an initial public offering in London next year, financial market sources said yesterday.

Sportmaster could attract up to $700m (£424m) in the IPO based on its own valuation of between $2.5bn and $3bn, the sources said, adding the retailer has not yet picked organisers for the issue.

The group is set to unveil revenues of $1.3bn for the year to the end of August, according to forecasts by Renaissance Capital, and report earnings before taxes, interest payments, depreciation and amortisation of $306m.

Sportmaster’s plans are being formed at a time of turbulent financial markets not suited to floats, as investors rush to exit risky assets including Russian equities.

Just yesterday, market turmoil prompted fellow Russian retailer Centrobuv to rule out an IPO this year.

And the only scheduled float on the US markets this week, online video company Tudeo on Wednesday, saw its shares sink almost 12 per cent on the first day of trading as the firm was swept up in market turmoil.