Moscow, Russia– 8 February 2017– Sistema PJSFC (“Sistema” or “the Corporation”) (LSE: SSA; MOEX: AFKS), a Russian public diversified holding company, notes that its subsidiary, PJSC Detsky Mir (“the Company” and, together with its subsidiaries, “Detsky Mir”) has announced the pricing of its initial public offering (the “Offering”) of its ordinary shares (the “Shares”) on Moscow Exchange.

• The offer price has been set at RUB 85 per Share.
• The Offering implies a market capitalisation at the commencement of dealings of approximately RUB 62.8 billion.
• The Shares have been admitted to trading in Level 1 of the List of Securities Admitted to Trading on Moscow Exchange. Trading is expected to commence on 10 February 2017 under the ticker “DSKY”.
• Sistema owned a 72.57% stake immediately before the Offering, and sold 145,055,738 Shares, representing approximately 19.6% of the Company’s share capital, with the possibility to increase the number of Shares sold to a total of 166,814,099 (representing approximately 22.6% of the Company’s share capital) in the event that the over-allotment option is exercised. As a result of the Offering Sistema will retain a stake in Detsky Mir of at least 50% +1 share.
• Sistema expects to receive proceeds from the transaction of up to approximately RUB 14.2 billion, gross of underwriting and other fees.
• The full text of Detsky Mir's announcement with further details on the Offering is available at corp.detmir.ru/en/

Sistema President Mikhail Shamolin said: “We are pleased with the success of Detsky Mir’s offering, and welcome the expanded family of shareholders to this uniquely attractive business. Over the last several years we have grown Detsky Mir into a major retailer, while consistently generating strong growth and returns on capital. Today, the Company begins a new chapter in its history with a highly successful IPO – the first in Russia in 2017 and the largest in EMEA year-to-date – that attracted a highly diversified book of domestic and international investors from Europe, the US and Asia. Sistema has maintained its controlling interest in Detsky Mir as we believe that significant further potential remains to be unlocked. The Company is well positioned to continue its growth by capitalising on its market leadership, robust infrastructure, iconic brand and high-growth e-commerce segment under one of the best management teams in the Russian market.”

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