11 Jan 2011 15:55

HMS Group officially announces London IPO plans

MOSCOW. Jan 11 (Interfax) - HMS Group, formerly Hydraulic Machines & Systems, has officially announced plans to take HMS Hydraulic Machines & Systems Group PLC public with an initial offering on the London Stock Exchange.

"The offer will consist of existing and new shares in the form of GDR," HMS said in a distributed statement.

The IPO organizers are to be JP Morgan, Morgan Stanley, and Renaissance Capital.

The company will file with the Financial Services Authority to trade under the ticker symbol "HMSG".

The statement does not specify the size of the IPO.

The IPO will expand the company's presence on the fast-growing pump equipment market in Russia and the CIS, General Director Artyom Molchanov is quoted in the statement as saying. The company also expects organic growth, based on its "strong management team," the company research facility and its manufacturing base.

HMS manufactures pumps and other equipment for the oil and gas, power generation and water supply industries. HMS had 41% of the Russian market in industrial pumps (in those economic segments where it operates) in 2009, according to data from the consulting firm Frost & Sullivan. It had a 35% share of the market in modular systems. Net profit amounted to 83.2 million rubles in 2009 on revenue of 14.8 billion rubles. Earnings before interest, taxes, depreciation and amortization (EBITDA) was 1.9 billion rubles. The corresponding figures for the first nine months of 2010 were 1.1 billion rubles, 16.2 billion rubles and 2.3 billion rubles.