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Russian jeweller Sokolov plans U.S. IPO as revenues double -Breaking

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© Reuters. Artem Sokolov (Managing Partner and Co-owner at Sokolov Jewelry) poses in Moscow on November 18, 2021. Picture taken November 18, 2021. REUTERS/Evgenia Novozhenina

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By Olga Popova

MOSCOW, (Reuters) – Russian jeweller Sokolov has plans to list in New York and Moscow as a dual listed company in 2023. Its co-owner said that the Russian jeweller was betting on strong sales growth and the improvement of its retail network. This is in addition to a host of Russian businesses pursuing market debuts.

Russian initial public offering activity (IPO) has increased as Russia’s economy recovers following the COVID-19 Pandemic. As concerns about Western sanctions recede, however, a few postponements have hampered this listing spree.

Artem Sokolova, managing partner of the jewellery network that has been around for almost 30 years, stated to Reuters, “In spring 2022, we will do a Pre-roadshow for a Year… We plan to enter into the US and Moscow markets in 2023.”

He said, “In the United States, we are considering both New York Stock Exchange (NYSE) and Nasdaq.” To have good liquidity and free floating, we must raise approximately $500,000,000.

Sokolov is a manufacturer of jewellery. It was previously a wholesaler and had been in business for many years. In 2014, it launched its brand and quickly moved to retail. This now accounts for nearly half of the company’s revenue. The company expects to open 350 shops by 2021. This is an increase of the 20 stores it had in 2019.

Sokolov’s January to September revenue was approximately 20 billion Russian rubles ($275m), and full-year revenue will be about 30 billion, more than twice the year before.

Although the company didn’t disclose any profit figures, Sokolov stated that they were profitable since their inception. We now have an exponential growth in revenue and profits.”

Sokolov projected that Russia’s jewel market leader in retail revenues would be Sokolov, taking over domestic rivals Sunlight (OTC:) and 585 Gold (OTC:). Swarovski (OTC) and Pandora (OTC), are the closest international rivals for Sokolov.

It also offers jewellery sales via a mobile application, with one million active monthly users. The website has 3 million active monthly users.

He stated that “We will strive to be number one mobile jewellery app in the world” with both our retail and manufacturing.

Sokolov also plans to open 15 stores in Kazakhstan by 2022, and will establish a German retail network next year.

($1 = 72.8453 roubles)

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