M.Video SPO bid book fully subscribed - source
MOSCOW. Sept 20 (Interfax) - The bid book for electrical appliance retailer OJSC M.Video shares in its SPO will be fully subscribed, a financial market source told Interfax.
Price guidance is 255-265 rubles a share.
Svece Ltd, acting on behalf of the company's main beneficiary and president Alexander Tynkovan has put 18 million shares or 10% of issued shares in the company up for sale. Deutsche Bank is organizing the offering.
"The main purpose of the placement is to increase the company's liquidity. The company has performed well for several years, we are debt-free and liquidity is all that is holding us back. The placement will boost our free float approximately a third, and control over the company will be preserved," a source close to thee shareholders told Interfax.
Svece will own 56.7% of M.Video post-offering and will undertake not to sell shares for half a year.
M.Video closed trading at 283.27 rubles a share on Wednesday, valuing the stake that is up for sale at around 5.1 billion rubles.
Analysts at VTB Capital said they thought the shares would be sold at a 10% discount to market rates.
The bid book is expected to close on Thursday.
The free float will approach 40% when the book closes. Tynkovan will keep control of the company.
It is thought those subscribing to the shares will receive a special dividend of up to 30 rubles per share, subject to board approval in September.
M.Video has 179,768,227 issued ordinary shares, par value 10 rubles each.
M.Video ended H1 2012 with 277 electronics and appliances stores in 221 cities in Russia. H1 IFRS net profits were up 58% year-on-year at 1.2 billion rubles. Earnings before taxes, depreciation and amortization (EBITDA) came to 2.5 billion rubles (1.9 billion rubles in H1 2011), and sales revenues were up 26% at 69 billion rubles, including VAT.