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One of Russia’s largest haulage operators, Globaltruck Management, is to seek a public listing on the Moscow stock exchange to raise funds to expand its trucking fleet and “to make targeted acquisitions when appropriate”.
No timeline to the initial public offering (IPO) has been given, although the company said at least two-thirds of the offering would be in the form of new shares available to institutional and retail investors in Russia, as well as international institutional investors.
Co-founder and chief executive Alexander Eliseev said: “The Russian road freight industry represents an outstanding opportunity for growth for a company that provides high-quality, wholly reliable services, as Russian and international retailers and other businesses expand across the country.”
Globaltruck claimed to be the largest full-truckload (FTL) operator in the Urals and Siberia and the second-largest in Russia, and counts IKEA, Metro, Procter & Gamble and Unilever among its blue-chip clients, as well as Russian industrial giants MMK, UMMC and Sibur.
Last year it posted revenues of Rb6.2bn ($107m) and an EBITDA of Rb1.4bn with an EBITDA margin of 22.5%. Its fleet comprised 1,090 trucks and 1,1,70 trailers operating across 11 hubs.
It has a major presence in the retail and FMCG sectors – bringing in 29% and 26% of last year’s revenue respectively – and its growth in these volumes have mirrored the way major international brands have expanded across the country.
“Volumes from key segments are expected to grow, as retailers are likely to continue geographical expansion and to further reduce long-haul captive fleets and outsource FTL transport for greater efficiency,” it says in its prospectus.
And according to Russian research agency MegaResearch, Russia’s trucking industry remains fragmented, with the 10 largest FTL operators controlling just 16% of the market and just 2% of haulage companies have fleets larger than 50 units.
Globaltruck says it intends to use the IPO proceeds to acquire a further 350-450 trucks and trailers next year, reducing the average age of its fleet to 2.5 years. And it “expects the larger, newer and more efficient fleet to result in stronger EBITDA margin and EBITDA/truck growth”.
Mr Eliseev added: “This IPO is an important milestone in Globaltruck’s history that will enable us to significantly expand our fleet, help to further strengthen the group’s position and provide an opportunity to lead the consolidation of our sector.”