Ozon Pharmaceuticals IPO priced at 35 rubles/share, upper end of price range

SAMARA. Oct 17 (Interfax) - Russia's PJSC Ozon Pharmaceuticals carried out its initial public offering at a price of 35 rubles per share, the upper end of the previously announced price range of 30-35 rubles, the Togliatti-based company reported in a press release.

The placement price values the company at about 38.5 billion rubles, including the funds raised in the IPO, the company said. The IPO totalled 3.45 billion rubles, including the base amount of 3 billion rubles and stabilization shares totalling 0.45 billion rubles.

"Demand from institutional and retail investors exceeded the amount of the offering at the upper end of the price range by multiple times. The group attracted a broad range of institutional investors, as well as more than 40,000 retail investors into its equity in the IPO," the company said. Institutional investors bought up 47% of the IPO and 53% went to retail investors, the allocation for whom was about 11%.

The company plans to use the proceeds from the IPO to implement its growth strategy, which involves broadening its line of generic drugs and biosimilars, as well as launching new production facilities.

The IPO was structured with a stabilization mechanism amounting to 15% of the base offering, or 0.45 billion rubles. This mechanism involves only purchases of shares on the open market and will be in effect for 30 days after the start of trading.

Trading of Ozon Pharmaceuticals shares will begin on the Moscow Exchange at 4:00 p.m. Moscow time on October 17 under the ticker OZPH and ISIN RU000A109B25.

Existing company shareholders and affiliated persons committed to a standard 180-day lock-up period after the completion of the IPO under an agreement with professional securities market participants. "Exceptions are possible on the condition that new shareholders assume obligations to comply with restrictions on the disposal of shares and this does not lead to an increase in the number of shares in free float," the press release said.

As reported, the company officially announced its intentions to hold an IPO on the Moscow Exchange on October 8.