Groupe Casino Files for U.S. E-Commerce IPO
June 9, 2014
Yet another international e-commerce giant has filed a U.S. IPO expected to net more than $1 billion. French megaretailer Groupe Casino last week filed papers for an initial public offering with the U.S. Securities and Exchange Commission that would spin off its e-commerce business—to be named Cnova and listed on the New York Stock Exchange. Casino will retain ownership of the new entity, which will be incorporated in the Netherlands. In 2013, Cnova, which operates discount retail Websites in France, Colombia, Thailand, Vietnam, and in Brazil, racked up nearly $5 billion in sales.
Just last month, JD.com, China’s second-largest e-commerce company, raised nearly $1.8 billion in its U.S. IPO, setting the stage for its larger Chinese competitor, Alibaba.com, to net even more. Casino said it will use the proceeds of the Cnova IPO to focus on expanding its e-commerce business in Brazil.
“The success of Cnova will be based on a low-cost business model with attractive pricing and extensive product assortment and highly differentiated delivery and payment solutions,” Casino said.