Russian credit firm Arifmetika plans to register in Canada in 2022


A sign displaying information about the shares of the Toronto Stock Exchange (TSX) is visible in Toronto on June 23, 2014. REUTERS / Mark Blinch / File Photo

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MOSCOW, Dec.21 (Reuters) – Russian firm Arifmetika Financial Solutions, which provides small loans to individuals, plans to start trading in Canada in early 2022 and aims to raise around $ 100 million over the next 12-18 months, said the head of its parent company. OR Group (ORUP.MM) says.

The technical listing, which would allow the microfinance company to go public without a prior public offering, would prolong a wave of Russian company listings, provided geopolitics, including tensions over Ukraine, do not thwart the project. Read more

“We plan to raise around $ 100 million,” Anton Titov, founder and director of OR Group, told Reuters. “The deals will be 12-15% each round, with three rounds planned. We plan to bring 49% to market within a year and a half.”

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In September, OR Group, which started out as the shoe chain Obuv Rossii and has grown into a broader e-commerce platform, announced its intention to list Arifmetika on the TSX Venture Exchange in September. Canada through a private equity firm (CPC) equivalent to SPAC, Navigator Acquisition. Corp. (NAQp.V)

Titov, who expects Arifmetika and Navigator to sign a final deal soon, though he did not say when, said the company could be valued at between $ 100 million and $ 140 million after a first round of financing in the first half of next year.

Explaining how the technical offering differed from an initial public offering (IPO), which requires onerous regulatory controls, he said: “There is variability here – you can attract money gradually, dilute a large stake. or make small additional broadcasts. “

IPO activity picked up in Russia as the country recovered from the initial impact of the COVID-19 pandemic and global stock markets surged, in part thanks to the investment in retail.

In August, video game developer Nexters used Russian Special Purpose Acquisition Company (SPAC) Kismet to start trading shares on the US Nasdaq. Read more

SAVS are shell companies that raise funds to acquire a private company and have it go public without requiring an IPO.

Arifmetika’s planned listing will be similar.

Founded in 2010, the company has sales of 2.2 billion rubles ($ 29.75 million) in 2021 with a net profit of around 600 million rubles, Titov said.

Titov said Arifmetika wanted additional funds to help him take a leading position in a market that some of Russia’s biggest banks have also started to enter, as well as for acquisitions.

“Right after the deal, we are ready for effective negotiations,” Titov said, adding that he could expand internationally from 2023, once he has made significant progress in the Russian market. .

($ 1 = 73.9586 rubles)

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Report by Olga Popova; Writing by Alexander Marrow; Editing by Katya Golubkova and Barbara Lewis

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