Luxoft to place over 4 mln shares worth $64-$72 mln during IPO
MOSCOW. June 24 (Interfax) - Russian software developer Luxoft is offering over 4 million shares at $16-$18 each during its initial public offering (IPO) on the New York Stock Exchange (NYSE), the company reported.
At this price, Luxoft's shareholders might raise $64-$72 million.
Luxoft had set the price range for its shares at $16-$18. The software developer's charter capital is 32,639,115 Class A shares (will be traded on the exchange and bear one vote) and Class B shares (will not be traded and bear ten votes). Therefore, the entire company is valued at $522-$588 million.
IBS, Luxoft's key shareholder, will place 2,046,035 shares, or 6.3% of the company's charter capital, during the IPO. Luxoft itself will sell the same number of shares.
The IPO organizers are UBS, Credit Suisse, JP Morgan, VTB Capital, and Cowen and Company. They will receive a greenshoe option of 613,810 shares.
According to Luxoft's prospectus, potential buyers of its shares can only expect investment return if the share price grows. "The company does not intend to pay dividends in the foreseeable future," the prospectus said.
Luxoft used to regularly share its profit with shareholders. The company shelled out $4 million in dividends for the financial year ended March 31, 2011, $27 million for the year after, and this year shareholders can expect $30.5 million.
Luxoft creates software and IT solutions. Its main clients are Deutsche Bank, UBS (the two banks account for 47% of Luxoft sales revenues) and Boeing. The United States and Canada account for 42% of the company's business, Britain for 28.2%, Germany for 12.8% and Russia for 11.2%. The bulk of Luxoft's 5,846 employees are based in Ukraine (2,582) and in Russia (2,076).
Company sales revenues in the financial year ended March 31, 2013 amounted to $314.6 million, 16% more than for the preceding financial year. Net profits were $37.5 million versus $36.3 million. Luxoft's obligations run to $16.8 million, and the company has $4.5 million on its accounts.