Etalon to place GDR in IPO at $7 each, valued at $1.6 bln
MOSCOW. April 15 (Interfax) - Developer Etalon Group has set the placement price for GDR in its IPO at $7 per, the lower end of the $7-$9 price range, a company statement says.
The entire company is valued at $1.56 billion or $2.06 billion after the placement of additional shares in the IPO.
The company will raise $575 million by selling 71, 428,571 new shares in the form of GDRs and Gazprombank Asset Management, Baring Vostok, Etalon owner Vyacheslav Zarenkov and several Etalon managers are selling 10,714,286 shares for $75 million. Zarenkov's Strata Investments will offer an over-allotment option to underwriters to sell 12,321,428 shares for $86.2 million.
The company's free float following the IPO will be around 28%.
Reports have said Bank Saint-Petersburg might acquire $30 million worth of GDR or between 1.2% and 1.5% of the company post-issue, not including the over-allotment.
The developer plans to earmark 70% of the $500 million raised for acquiring construction sites, and the rest for general corporate purposes, including construction projects.
Etalon will have 294,957,971 issued shares post-IPO.
Official trading in the shares on the LSE begins April 20.
Credit Suisse, Renaissance Capital and VTB Capital are the joint bookrunners on the transaction.
Etalon Group is the parent company for the LenSpetsSMU construction holding, which builds residential and commercial real estate.
The main beneficiaries in Etalon are Vyacheslav Zarenkov, the chairman of the LenSpetsSMU board of directors, and members of his family with 68.3%. In addition, Baring Vostok Capital Partners owns 15% in Etalon acquired in March 2008. Market players at the time valued the transaction at over $150 million.
LenSpetsSMU is one of the leaders on the housing market in Russia's northwest. The company's portfolio is now comprised of 28 projects. At the end of 2010, the developer's total housing ready for sale came to 3.13 millions square meters (in St. Petersburg, the Leningrad Region and the Moscow Region). The company's two biggest projects are Izumrudnye Kholmy (in Krasnogorsk in the Moscow Region) with 868,034 square meters and Yubileinyi Kvartal (St Petersburg) - 601,758 square meters.
Etalon Group's sales revenue for 2010 came to $669 million compared to $636 million in 2009. The company's EBTIDA went down from 239 million to 227 million while the EBITDA margin dropped from 38% to 34%.