Car-sharing major Delimobil fully covers books on IPO

Car-sharing major Delimobil fully covers books on IPO
The Russian car-sharing major is eyeing a potential valuation of over $900mn when it lists on the New York Stock Exchange. / Delimobil
By bne IntelIiNews October 27, 2021

Moscow-based car-sharing company Delimobil has fully covered the books for its upcoming IPO, sources close to the deal told bne IntelliNews on October 26. The company filed for listing on the New York Stock Exchange on October 8, and also plans a MOEX listing, as followed by East-West Digital News (EWDN).

The IPO will see the company issue 20mn American Depository Shares (ADS), each of which represents two ordinary shares. Each ADS is expected to be valued at between $10-12. A greenshoe option will see underwriters able to sell up to 23mn additional shares. The total company valuation could surpass $900mn, according to a report by Reuters news agency.

Delimobil reportedly plans to use the proceeds from the IPO to cover cash burn before it turns break-even. According to the company’s prospectus in October, it operates 18,000 car-sharing cars, which has made it the car-sharing leader in Moscow after it overtook its closest competitor, Yandex.Drive. Delimobil’s Moscow market share is estimated to be 44%, according to its prospectus. The company also operates in 10 other Russian cities.

Delimobil’s revenue rose to RUB4.93bn ($70.65mn) in 1H21, more than doubling the RUB2.25bn it made in the same period the previous year.

Car-sharing has taken off in Moscow in recent years as relaxed regulations have seen Russia’s capital set the pace in the global car-sharing race. As a result, the segment could triple by 2025, bne IntelliNews reports.