Softline has publicly disclosed its intention to conduct a secondary public offering, commonly referred to as an SPO, with a target fund-raising cap of 3.75 billion rubles. The issuer released the information via a press release and noted that applications to participate in the dilution and placement transaction will be accepted from November 29 through December 6. Investors will be offered shares at a price range of 140 to 149.84 rubles per security, providing a window for buyers to submit their bids within this band.
Under the terms of the deal, Softline intends to place up to 25 million of its own ordinary shares from treasury stock as part of the secondary offering. At the upper end of the stated price range, the volume of shares on offer could generate roughly 3.75 billion rubles in new capital for the company. At the conclusion of the application period, management expects the final placement price to align with, and likely not exceed, the prevailing market price of Softline shares on the exchange where the stock trades.
Participants in the demand-based placement will be entitled to acquire, six months after the closure of the offering, an additional 10 Softline shares for every 40 already purchased, at the same price paid during the SPO. The shares put up for sale are being provided by Softline Projects, a subsidiary, which is operating under a loan agreement with Atalaya LLC, a majority shareholder. This arrangement ensures a controlled and structured expansion of the equity base while maintaining liquidity for existing holders.
The funds raised through the SPO are earmarked to support Softline’s ongoing growth initiatives. Management has signaled that the capital will back strategic investments, technology enhancements, and potential geographic expansion aimed at strengthening the company’s foothold in its core markets. Following the announcement, Softline’s stock price experienced a decline on the Moscow Exchange, moving lower by a notable percentage in the immediate aftermath. Market participants weighed the dilution against anticipated long-term value drivers tied to the capital raise.
Earlier, there were broader comments from the investment community about a rising momentum in the Russian equity markets, and observers in the United States noted a strengthening appetite for Russian listings. In a separate development, Henderson, a menswear retailer, had previously disclosed plans to explore an initial public offering on the Moscow Exchange before the close of 2023, signaling continued activity and investor interest in the region from diverse retail and corporate actors.