IEK GROUP has commenced the procedure for an IPO: reorganization has begun in the company - a change in the legal form. The owners decided to transform LLC "IEK HOLDING" into Joint Stock Company "IEK HOLDING". The plan to conduct an IPO in 2025 was announced by the company in June 2024 and already in August, its implementation began.
Mikhail Gorbachev, Executive Director of IEK GROUP: "Despite turbulence in the financial market, we are not changing our plans for an IPO. The company's performance indicators are consistently positive; the revenue growth of LLC "IEK HOLDING" according to RAS (Russian Accounting Standards) for H1 2024 compared to H1 2023 is almost 20%. We have been preparing for this step for over four years. And now we are moving consistently towards the set goal. An IPO will allow us to attract additional capital for business development, expand the circle of investors, and offer them another liquid instrument."
Previously, IEK GROUP carried out two bond issues on the Moscow Exchange - in 2022 and 2023 . Bonds are in demand and are assessed as a reliable instrument with high yield - from 20%.
IEK GROUP has a high credit rating at the level ruА- with a positive outlook ("Expert RA"), which is due to low debt and interest burden, high profitability, moderately strong market and competitive positions, moderately high assessment of the corporate risk block, acceptable liquidity assessment, as well as a weak risk profile of the industry. According to estimates by experts of the rating agency "Expert RA" the company is in the top 3 in Russia in all main segments of presence - low-voltage equipment, lighting, passive telecom equipment.
IEK GROUP has taken strong positions thanks to the creation of Russian production and the development of its technological potential. The company is confidently transforming from a trading and production company into a digital one, with emphasis on IT services and its own digital ecosystem. Already today, at specialized platforms, including at Skolkovo, IEK GROUP management actively shares experience in business digitalization - building a data office and a system for managing the life cycle of digital initiatives, experience in implementing solutions based on artificial intelligence, as well as digital transformation of corporate culture based on a data-driven approach. The company interacts with customers through the digital "IEK Business Platform". IEK GROUP offers clients solutions combining equipment, modules for managing engineering systems, and MasterSCADA software - the developer of this universal platform for automation and digitalization, the company "MPS soft", is part of IEK GROUP.
IEK GROUP production enterprises are equipped with automated and robotic lines. The company's assets include 10 production sites in 7 regions of Russia. "The business is actively developing. We continue to build and prepare for launch new plants; work is currently in full swing on three projects - in Kazan, Balabanovo, and Maloyaroslavets, Kaluga region. At these sites, we will produce both traditional and fundamentally new products for us. Our assortment expands annually by
Over the past 5 years, IEK GROUP has conducted a number of M&A deals and acquired ready-made competencies that complemented the company's main specialization. The key deal in the electrical equipment market was the purchase of Russian assets of Legrand Group (LLC "Daccord", LLC "EBS", and JSC "Kontaktor"). Thus, today IEK GROUP offers solutions replacing analogues of brands that left the Russian market and develops the potential created by the global manufacturer in the territory of the Russian Federation.