MOSCOW: Russian low price retail goods network Fix Price is considering an initial public offering (IPO) in London and Moscow to capitalise on demand for cheap goods and may raise nearly $1 billion, three financial market sources told Reuters on Tuesday.

Fix Price, which sells goods in walk-in shops and online at fixed prices, has grown in popularity as the COVID-19 pandemic has reduced many Russians' spending power.

To arrange the possible deal, the sources said the company had retained Bank of America, JP Morgan, Citibank, Morgan Stanley and Russia's VTB Capital.

VTB and Bank of America declined to comment and the other banks did not immediately reply to requests for comment.

Asking not to be named because they were not authorised to speak to the press, the sources said Fix Price was considering a dual listing in London and Moscow, which could happen in the coming months, but the terms have yet to be finalised.

In a statement to Reuters, Fix Price said that it is considering different "strategic development options," including on the capital markets. "But it is too early to speak of specific plans, terms and banks' line-up," it said.

If finalised, the deal would follow an IPO of Russian online retailer Ozon that raised more than $1 billion in a Nasdaq placement in November, a reflection of the boom in e-commerce as a result of the pandemic.