RusAgro selling GDRs close to lower end at $15, valued at $1.8 bln
MOSCOW. April 8 (Interfax) - Ros Agro Plc is selling shares in its IPO on behalf of Russian agrifood holding RusAgro at $15 per GDR, the company said.
This values the company at $1.8 billion on the LSE.
The price range for IPO was $14.5-$18.25 per GDR.
The IPO will earn RusAgro $300 million - the company itself is selling 20 million GDRs - and Ros Agro Plc's main shareholder, Vadim Moshkovich's Shiny property Ltd, $30 million. Five GDRs represent one share.
IPO organizers Renaissance Capital, Credit Suisse and Alfa-Bank have an over-allotment option to buy 3 million GDRs from Shiny Property at the placement price in 30 days. If exercised, this will bring the total IPO proceeds to $375 million.
The free float will be 18.3% or, if the option is exercised, 20.8%.
Conditional trading in the GDRs begins on April 8 and official trading under the AGRO ticker on April 13.
This is RusAgro's second attempt at an IPO. The first, last spring, was due to be carried out in Russia only and would have valued the company at $1.23 billion-$1.55 billion but it was called off due to poor market conditions.
RusAgro intends to use the IPO proceeds to acquire new assets and land, to modernize existing assets and expand into new business segments.
Ros Agro Plc owns 100% of RusAgro, which is controlled by Vadim Moshkovich and his family.
The group owns more than 35 farms and seven sugar refineries in the Belgorod, Tambov and Voronezh regions, a margarine plant in Yekaterinburg, an extraction plant in Samara and a pig farm in Belgorod.