Invest in Russia (investinrussia) wrote,
Invest in Russia
investinrussia

OJSC Live office (ОАО Живой офис) IPO – burning questions

It’s equity investment at a turnaround point.

Current trends looks scary:
- EBITDA declines for at least the 2nd year in a row (2011, 2012) and we have not seen reports before 2010!
- EBITDA margin achieved 0.2% in 2012

The company plans to get 129 RUB * 4m shares=516m RUB to invest in working capital and CAPEX. The company is sincere that in 2013 situation will deteriorate and EBIT will go to negative zone. But suddenly in 2014
- Revenue will almost double
- EBITDA margin increase from 0.5% to 5.9%

Can this happen on a …
- B2B market (=slow switching)
- Very competitive and price-sensitive market
- Market growing a bit faster than inflation: 10% a year

? The answer is hardly.

http://macrolion.com/blog/OJSC-Live-office-OAO-ZHivoj-ofis-IPO--burning-questions/
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