TMK expects to raise 5.5 bln rubles with share issue
MOSCOW. Nov 21 (Interfax) - TMK expects to raise around 5.5 billion rubles with its 6%-share issue, the pipe maker's deputy CEO, Vladimir Shmatovich, said on a conference call.
"The board will very shortly approve the price, but basically we are looking at around 5.5 billion rubles," Shmatovich said.
Shmatovich confirmed TMK intended to issue the shares before the end of the year. He said earlier that the proceeds from the share issue would go towards paying off debt and optimizing capital structure. TMK's net debt fell $123 million during Q3 2014 to $3.508 billion.
TMK's board of directors decided at the end of June to carry out a share offering equivalent to 6% of the company's actual charter capital. The price of the share offering will be determined by the board and announced by the start of the placement. TMK CEO Alexander Shiryaev said earlier that the placement of 6% of shares could take place "in the middle of October, maybe November."
Non-executive chairman Dmitry Pumpyansky is the company's main beneficiary. The free float is 23%.