Russneft plans to raise $450-$500 mln in IPO, deal may close in late Nov
MOSCOW. Nov 1 (Interfax) - Russneft plans to close its IPO at the end of November, with premarketing to be held in November 20-30, B&N Bank CEO Alexander Lukin told journalists.
MDM Bank , which is being merged with B&N Bank, is collecting bids for the shares.
"Russneft plans to raise $450 million-$500 million in the IPO... It depends on the valuation by investment bankers," Lukin said.
Lukin did not specify which shareholders would supply the shares for the IPO.
Bids for the shares are to be collected in the last 10 days of November, he said. "According to the plan, the final 10 days of the month, from the 20th to the 30th, is premarketing and collection of bids. So that the deal closes by the end of November. November is a key month for our structure. In November we plan to merge B&N Bank with MDM," Lukin said.
Mikail Shishkhanov, the main owner of B&N Bank and a Russneft co-owner, said there is no anchor investor in the IPO and that plans are to attract institutional investors. "We are counting more on institutional investors, because we already have an anchor investor: Glencore. To a large extent this goes to raise the company's capitalization," he said.
Russneft is conducting the IPO in its current form, Shishkhanov said. "For now in the form it is, and then in the following stage they [Russneft assets] will be consolidated. Probably next year," he said.
Lukin added that in the course of the placement, Russneft mainly plans to bring in Russian investors. "We have demand on the part of Switzerland, but Russian institutional investors are the main thing," Lukoil said, noting that there might be demand for the shares among banks.
