DOM.RF intends to raise at least 20 bln rubles via IPO; cornerstone investors ready to contribute over 10 bln rubles

MOSCOW. Nov 14 (Interfax) - PJSC DOM.RF plans to raise at least 20 billion rubles during the IPO to market investors, with cornerstone investors intending to purchase shares totaling 10 billion rubles, the Russian government housing and urban development corporation said.

The price range is set at 1,650 to 1,750 rubles per share, in line with market capitalization of 267 billion to 283 billion rubles, excluding funds planned for the IPO.

Bookbuilding opens on Friday at 10:00 a.m. Moscow time and closes on November 19 at 1:00 p.m.

VTB Capital Trading is the broker.

DOM.RF has received notifications from several institutional investors regarding intentions to purchase shares totaling over 10 billion rubles at a price not exceeding 1,750 rubles per share. DOM.RF said that the cornerstone investors include JSC Astra UA, JSC VIM Investments, JSC UK Ingosstrakh-Investments , and others.

The company intends to use all funds raised during the placement to implement its strategy to develop business. The Russian government, as a shareholder of DOM.RF, does not intend to sell its shares during the IPO.

The final number of shares to be placed and the total amount of funds raised will be determined based on the bookbuilding and announced in accordance with established procedure. The IPO will include a price stabilization mechanism of approximately 10% of the minimum placement size, which will be in effect for 30 calendar days after the start of trading.

The company's supervisory board will set the IPO price once bookbuilding has finished, though no later than the IPO start date. Trading is expected to start in shares listed on the Moscow Exchange on November 20 under the ticker DOMRF and ISIN RU000A0ZZFU5. The shares are expected to be included in the Moscow Exchange's tier 1 quotation list.

DOM.RF has also announced that it is preparing to implement a long-term incentive program for senior management, overseen by a professional operator. A block of shares totaling 2,285,714 will be acquired as part of the IPO in order to implement the program. The program operator will acquire the shares using the group's funds. This will not be considered a free float at the time of the IPO. The minimum offering size does not include shares acquired for the incentive program.