Agro-business Valinor looks to raise $250-$345 mln with IPO on WSE
KYIV. July 6 (Interfax) - The agro-industrial company Valinor Public Ltd (Cyprus), which has assets in Russia and Ukraine, has set the top price for its IPO on the Warsaw Stock Exchange (WSE) at 39.5 Polish zloty ($14.30) per share, the prospectus for the placement published on Wednesday says.
Plans call for the placement of at least 17,435,575 shares (including 8,020,365 new shares), but not more than 24 million of them, the prospectus says. "The final number of shares offered, which will not exceed 24 million, will depend on the final offer price, based on a rough indicative offer size of $250 million," it says.
Placement terms put the IPO's maximum size at between $250 million to $345 million. An option for the additional placement of 1,743,558 shares is involved.
The bid book is expected to open July 14 and a finalized placement price to be announced the following day. The shares will begin trading on the exchange on or around July 26.
There are 35 million shares currently extant, of which 31.5 million, or 90%, are controlled by Valars Management Ltd and 9.99998% by Deutsche Bank.
Kirill Podolsky owns 51% of Valars Management, Edvard Kurochkin - 11%, Alexander Lavrinenko - 9%, Vitaly Bobnev, Alexei Edushu, Marina Barbarash, and Mikhail Cherkasov - 5.79% each, Yury Gordeichuk - 3%, and Galina Ignatova - 2.84%.
Expectations are that after placement Valars Management will see its share total drop to 22,084,790 and its stake in the company to 51.3%, as the overall number of shares rises to 43,020,365.
Troika Dialog and Deutsche Bank are the IPO organizers and book-runners.
Valinor is an international agrarian company, with agricultural and sales divisions. It commands 358,000 square hectares (about 1,382 sq. miles) of land, including 235,000 hectares in Russia and 123,000 in Ukraine. More than 86% of that land produced harvests last year.
The group grows grain (wheat, barley, and corn), oilseed (sunflower and rape), and sugar beet. Last year saw the production of roughly 1.2 million tonnes of grain, or 16% more than the year before.
In addition to its production base, Valinor has storage assets able to hold 972,000 tonnes in aggregate, including agricultural warehouses, three elevators in Russia and four in Ukraine, and a modern fleet of agricultural machines and trucks.
The group's business (formerly Valars Group) was reorganized last year, separating agro-industrial outfit Valinor and trading company Valars.