15 Sep 2020 10:51

Sovcomflot announces IPO on Moscow Exchange, wants to raise no less than $500 mln

MOSCOW. Sept 15 (Interfax) - PJSC Sovcomflot has announced its intentions to hold an IPO on the Moscow Exchange .

Only shares of the new issue will be sold in the framework of the deal; the company's sole shareholder at present, the Russian Federation, is not selling its stake.

The shipping company expects net proceeds from the IPO to come to no less than $500 million, it said in a statement.

Russia will retain its status as majority shareholder following the deal.

The joint global coordinators and bookrunners of the proposal are VTB Capital, Citigroup Global Markets, Sberbank CIB, J.P. Morgan, and BofA Securities.

The company intends to allocate the funds raised as a result of the placement for general corporate needs, including investment in new projects and reducing its debt burden, the statement said.

The deal's terms envisage a six-month lock up period following the placement.

In the statement regarding the planned IPO, Sovcomflot also indicated the expected volume of dividends for 2020 - $225 million. The company plans to allocate no less than 50% of net profit to International Financial Reporting Standards (IFRS) for dividends.