Russian software developer 1C might go public in 2026 - report
MOSCOW. March 18 (Interfax) - 1C, Russia's largest developer of software for managing bookkeeping, warehouses, human resources and other business processes, might carry out an initial public offering in 2026, RBC reported, citing sources on the IT and financial markets.
1C completed the reorganization of the group's flagship company, IC LLC, into JSC 1C Group in February. The Central Bank of Russia registered a share issue for the new company in December.
RBC's sources said the company has already hired advisors for the offering and is now working on simplifying the structure of the group, which now includes at least 130 different legal entities.
One of the sources said 1C is in the active phase of IPO preparations and is considering going public in the fall. However, the "shareholder is still wavering," and prior to an IPO the company still has to restructure its corporate and financial management system, which "is now built for one beneficiary," the source said.
Until this process is finished, it is impossible to assess the value of the whole business, and the amount that the company is prepared to raise on the exchange will depend on this, the source added.
IC first voiced a desire to carry out an IPO back in 2008, RBC recalled. It was planned that an offering might take place in 2014. The company needed investment to accelerate its development and launch an options program for key employees. The company also considered bringing in its franchisees as shareholders. Later the timetable was pushed back to 2015 due to the need for lengthy preparations.
The company has not made any official statements about a possible listing in recent years.
A spokesman for 1C responded to RBC questions by saying only that the reorganization at the company is a "normal adjustment of the group of companies not related to changes in the composition or shares of ownership."
1C, which was founded by entrepreneur Boris Nuraliyev in 1991, is Russia's largest developer and distributor of enterprise resource planning systems. Its flagship product is 1C: Enterprise. The company also develops educational programs and publishes computer games.
Nuraliyev owned 65% of shares in the group's parent company as of the beginning of 2022 (most recent available data), and his brother Sergei held 15%. A fund managed by Baring Vostok bought about 9% of 1C in October 2011, but in 2020 it exited the company, selling the stake to Nuraliyev, RBC reported, citing an IT market source.
