DOM.RF officially announces plans to conduct IPO, start of trading planned for November

MOSCOW. Nov 10 (Interfax) - PJSC DOM.RF has officially announced plans for an IPO on the Moscow Exchange , the company said.

The state-owned company plans to obtain a listing and start trading its shares on the Moscow Exchange in November, it said. The shares are expected to be included in the first-tier list.

Investors will be offered exclusively shares issued as part of an additional issue through an open subscription. All funds raised during the offering will be directed towards implementing the strategy for further growth and business development, it said.

The Russian state, as the existing shareholder of DOM.RF, does not intend to sell its shares as part of the offering, retaining a majority stake in the capital after the IPO.

The company is undertaking a standard lock-up obligation for a period of six months from the announcement of the offering price.

The number of shares to be placed as part of the IPO will be determined based on the results of the book building process. The maximum size of the additional DOM.RF issue registered with the Central Bank of Russia is 28,549,883 shares with a nominal value of 1,400 rubles. The current charter capital of the state-owned company is divided into 161,782,668 shares. Assuming the full placement of the additional issue, its share in the increased charter capital will be 15%.

The placement will be available to Russian qualified and non-qualified retail investors (individuals), as well as to Russian institutional investors. Applications to purchase shares can be submitted through brokers, the company said, promising to disclose the technical details of the application procedure later.

A stabilization mechanism will be structured as part of the IPO, which will be in effect for 30 days after the start of trading in DOM.RF shares on the Moscow Exchange.

DOM.RF previously announced plans to raise 15 billion to 30 billion rubles from the IPO by placing around 10% of its shares. The company expected that its shareholders would include large investment and pension funds as well as retail investors.