Moscow Exchange officially announces IPO plans on its own floor
MOSCOW. Jan 21 (Interfax) - OJSC Moscow Exchange MICEX-RTS has officially announced its intention to conduct an initial public offering (IPO) of ordinary shares on its own trading floor - CJSC MICEX Stock Exchange.
Shares will be offered to institutional and retail investors in Russia and institutional investors outside of Russia and the U.S., as well as qualified institutional investors in the U.S.
One or both subsidiaries of Moscow Exchange will sell the shares - MICEX (CYPRUS) Ltd and LLC MICEX-Finance. All of Moscow Exchange's existing shareholders besides the Central Bank will be given the opportunity to participate in the offer as sellers through MICEX (CYPRUS) Ltd.
Credit Suisse, J.P. Morgan, Sberbank CIB and VTB Capital are acting as the joint global coordinators and joint book runners for the placement. Deutsche Bank, Goldman Sachs International, Morgan Stanley, Renaissance Capital and UBS Investment Bank are acting as joint book runners.
Investor meetings with the organizers' analysts kicked off on Monday, January 21, a financial market source told Interfax.
A source close to one of the MICEX's shareholders said that the company might generate around 15 billion rubles in revenue during the placement.
"It will be reasonable for such a large organization as the Moscow Exchange to conduct a placement for 15 billion rubles," the source said.
According to the agreement to merge the MICEX and RTS exchanges, in order to avoid falling within the scope of penalties imposed against the ex-shareholders in RTS, the unified exchange has to conduct an IPO in H1 2013 with a minimum placement volume of 9 billion rubles.
The placement volume will greatly depend on the offer - that is, the number of shares that RTS' ex-shareholders agree to sell during the IPO.
"The minimum placement will be 9 billion rubles, maximum, I think 23 billion rubles," the source said.
Guidance for the volume and placement price will be determined at the beginning of February, if the decision is made to conduct the IPO, he said.
Originally, the exchange was expecting capitalization of $6 billion. However, in the middle of December, First Deputy Chairman of the Central Bank Alexei Ulyukayev told Interfax in an interview that in light of the current macroeconomic situation, it will be lower.