MOSCOW, Oct 21 (Reuters) - Russian budget hypermarket chain Lenta has raised $150 million with the sale of new shares to speed store openings, capitalising on investor appetite for stocks that have proved resilient in the economic downturn.
A source close to the placement said that foreign investors bought the bulk of the offering, one of the biggest in Russia since the Ukraine crisis and subsequent sanctions battered investor interest in Russian stocks.
The share sale, launched late on Tuesday, is the second primary capital increase by Lenta this year, following the $225 million raised in March.
Lenta, Russia's fastest-growing food retailer, said on Wednesday that it had sold 21.1 million new global depositary receipts (GDRs) through an accelerated bookbuilding at $7.10 each, compared with a market price of $7.60 before the offering.
In tandem, the European Bank for Reconstruction and Development sold 17.6 million GDRs for about $125 million by reducing its Lenta stake to 7.4 percent from 11.5 percent, illustrating the strong demand for stock in a retailer that is flourishing by virtue of its appeal to cash-strapped Russian consumers.
"Despite a tough consumer environment, Lenta's performance in the year to date is relatively solid ... with no material worsening of trading and like-for-like trends in Q3 versus Q2," Renaissance Capital said in a note.
While foreign investors bought the bulk of Lenta shares on offer, Russian investors included state-backed Russian Direct Investment Fund (RDIF), which said it was joined by partners from the Middle East, among others.
"Lenta is unique because of the growth it shows and foreign investors like buying growth," one fund manager said.
In the third quarter Lenta increased sales by 29.3 percent year on year, outperforming rival X5's 28.6 percent and the 21.5 percent rise achieved by Magnit.
Its like-for-like sales, which do not take into account newer stores, grew 8.5 percent, with customer numbers up 2.1 percent while the average spend per customer visit rose by 6.2 percent.
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