01 February 2024 16:07 01 February 2024 16:07 | Share
Diasoft, a software developer for the financial sector, intends to conduct an IPO on the Moscow Exchange. The share of free float should be 8%. The company intends to allocate 50-80% of EBITDA to dividends.
IPO “Diasoft”
Diasoft, a software developer for the financial sector, announced its intention to conduct an IPO (initial public offering) on the Moscow Exchange. The placement will take place in February 2024. The securities received as a result of the additional issue of shares will be sold.
Also, current shareholders are considering the possibility of selling part of their shares. After the placement, the share of free float (free-float) will be 8%. Also, after the offering, the company and its existing shareholders undertake not to sell their shares for a period of 180 days.
Corporate structure and shareholders of Diasoft
The head structure of the company is PJSC Diasoft. The group of companies also includes Excalibur Management LLC, Diasfot LLC, Diasoft Plaftorma LLC, Diasoft Data Management LLC, Diasoft Digital LLC, Diaost ASP LLC, Diasoft Ecosystem LLC, Diasoft LLC Innovations”, Diasoft Technopark LLC, New Athena JSC, Vietnamese Diasoft Viet Nam and Cyprus Diasoft AM.
Diasoft LLC is classified as an enterprise of strategic importance for the defense and security of the country (due to the license for the production of encryption tools). In this regard, the alienation of shares of Diasoft PJSC may require permission from the government commission on foreign investment.
The shareholders of PJSC Diasoft are: General Director of the company Alexander Glazkov (21%), Deputy General Director of Diasoft LLC Oleg Mikhalev (18.7%), Deputy General Director of Diasoft LLC Alexander Gentsis (17.3%), Deputy General Director of Diasoft LLC and Chairman Board of Directors of PJSC Diasoft Andrey Dymov (12.5%), General Director of Diasoft LLC Oleg Roshchupkin – (12.5%), Executive Director of RT-Diasoft Alexander Lyashko (5%), Deputy General Director of Diasoft LLC Alexey Groshev and Denis Olshevsky, who occupies a similar position (4%).
The main suppliers of Diasoft are its subsidiary Diasoft Technopark (provides services for renting premises, the share in the total volume of purchases is 19% of the total volume of supplies) and Rokitsoft (services for modifying software products, 12%).
The main debtor is Gazprombank (debt volume – 92.9 million rubles, 11% of the total volume of receivables). The main creditor is Promsvyazbank (RUB 215 million, 13% of the total accounts payable).
Financial indicators of Diasoft
At the end of 9 months of 2023, the revenue of Diasoft PJSC amounted to 3.38 billion rubles, showing an increase of 16% compared to the same period in 2022. EBITDA (earnings before taxes, interest on loans and depreciation expenses) amounted to RUB 1.2 billion (growth – 33%), EBITDA margin – 35% (growth – 6 percentage points), net profit – 918 million rubles. (growth – 43%), profitability for this indicator – 27% (growth – 8 percentage points).
Free cash flow at the end of 9 months of 2023 amounted to 800 million rubles, net debt – minus 452 million rubles, the ratio of net debt to EBITDA – minus 0.13, return on equity (ROE, the ratio of net profit to the average annual amount of equity capital ) – 105%.
Diasoft dividends
For the fourth quarter of 2022, Diasoft paid dividends in the amount of 460 million rubles, for the second quarter of 2023 – 277 million rubles, and for the third quarter of 2023 – 225 million rubles. In 2024-25 the company intends to allocate at least 80% of EBITDA to dividends, in 2026 and beyond – at least 50%.
Russian market and Diasoft’s share on it
In 2022, the total volume of the Russian IT market amounted to 5.56 trillion rubles. with an average annual growth rate of 12.5%. The Russian software market in 2022 amounted to 1.1 trillion rubles, the average annual growth rate in 2019-22. amounted to 19.4%. The Russian software market has a growth potential of 12.5% year on year and by 2028 will amount to 2.2 trillion rubles.
Diasoft’s target market consists of three segments: corporate software for the financial sector, corporate software for all economic industries and government agencies, software production tools in accordance with new IT industry standards. In 2022, the volume of the target market amounted to 15.7 billion rubles.
It is expected that with an annual growth rate of 14.9% (starting from 2023), the capacity of the target market will increase to RUB 202.5 billion by 2028. The key drivers of the IT market are digital transformation, import substitution and information security, as well as new IT industry standards.
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Digitization
The software segment for the public sector and corporate software will grow by 12.7% and by 2028 will reach 100 billion rubles. The segment of system software and software production tools will recover at an accelerated pace (24.3% year-on-year) and by 2028 its capacity will be 43 billion rubles. The financial sector automation software market will grow at a rate of 13.5% year-on-year in the period 2023-28. and will reach 59.5 billion rubles.
According to Strategy Partners, in 2022 in the field of software for the financial sector, Diasoft was the leader with a share of 24%. Next come CFT (12%), R-Style Softlab (5%), Lanit (5%) and Neoflex (3%). It is expected that in 2023 Diasoft will occupy 27% of the market, by 2028 – 32%.
In the segment of system software and software production tools, the leaders are Sbertech, Rostelecom, Postgress Pro and Astra Group of Companies. In 2023, Diasoft’s share was 1%; by 2026 it will grow to 11%. In the software segment for the corporate market and the public sector, Diasoft’s share was 1% in 2023, by 2026 it will grow to 4%. The leaders in this segment are Rostelecom (26%), 1C (16%) and Softline (13%).
Igor Korolev
2024-02-01 14:13:06
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