Delimobil Holding S.A (DMOB) -- Channel checks just completed, are currently revealing, according to guidance that the deal is
oversubscribed. The books are scheduled to close
Tuesday at Noon in anticipation for a Wednesday debut. The company was founded in 2015 and now has 461,000 monthly active users. They grew their total revenue from RUB 2,245 million for the six months ended June 30, 2020 to RUB 4,930 million for the six months ended June 30, 2021,
representing a period-over-period growth of 120%. They grew their total revenue from RUB 5,012 million for the year ended December 31, 2019 to RUB 6,449 million for the year ended December 31, 2020,
representing a year-over-year growth of 29%. For the six months ended June 30, 2021, they generated a loss for the period of RUB 1,070 million and an Adjusted EBITDA gain of RUB 785 million, compared to a loss for the period of RUB 2,296 million and an Adjusted EBITDA loss of RUB 605 million for the six months ended June 30, 2020. Their results of operations for the six months ended June 30, 2020 were
materially affected by the COVID-19 pandemic, as they suspended their car sharing and long-term rental services from April 13 to June 10, 2020 in compliance with mobility restrictions put in place by the Russian government.
Despite these restrictions, their business proved resilient during this uncertain period, and partially as a result of the measures they undertook at the time, they experienced revenue growth of 29% for the year ended December 31, 2020, when compared to the year ended December 31, 2019. IPO Boutique polled a few Russian clients about this company and they said the service is popular, has robust demand in many large cities but has considerable competition from the likes Yandex Drive, Belka Car, and YouDrive.
After the disappointing IPOs of other ride-sharing services (Uber, Lyft, Didi Global)...caution should likely be exercised regarding this IPO despite the strong revenue in the last few months. However, Russian stocks that trade on domestic exchanges have fared well in 2021 with a strong Ruble. Comp Yandex NV (YNDX) is up 20% and two of the most recent Russia → USA IPOs...
Ozon Holdings (OZON) and Headhunter Group (HHR) are up 7% and 83% year-to-date, respectively.
We feel the recent underperformance of IPOs and the lack of track record on Russian IPOs is reason to exercise caution surrounding this deal. We are
electing to downgrade the rating on this IPO from a '3' to a '2'.
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