27 Sep 2021 13:37

Renaissance Insurance officially announces IPO on MOEX with primary offering up to 21 bln rubles

MOSCOW. Sept 27 (Interfax) - Renaissance Insurance Group has officially announced plans for initial public offering with a listing on the Moscow Exchange .

The offering will include a primary component in which the company plans to raise up to 21 billion rubles with new shares, and a secondary offering of existing shares by "certain shareholders," Renaissance Insurance said in a press release. The company did not specify the amount that might be raised by selling shareholders, but Interfax sources said earlier it would be about $100 million.

The Sputnik Group of Renaissance Insurance founder Boris Jordan and his business partners owns 52.77% of the insurer and Baring Vostok, which invested in the insurer in 2017, owns 18.6%.

In the spring of 2021, as a result of nongovernmental pension fund Blagosostoyanie's exit from Renaissance Insurance, the insurer acquired a new group of shareholders: Roman Abramovich's Millhouse Capital acquired 9.99% and Invest AG LLC, which represents the interests of Abramovich's partners in Evraz and other businesses Alexander Abramov and Alexander Frolov, acquired 9.55%. Concurrently, Andrei Gorodilov, a member of Abramovich's team since the 1990s, acquired 4.33%; and Ob Capital LLC, which is controlled by Invest AG president Sergei Bratukhin, acquired 4.77%.

Renaissance Insurance said the selling shareholders in the IPO are expected to be Sputnik Management Services Limited and its affiliate Holding Renaissance Insurance LLC, whose main beneficial owners are Jordan, Mary Louise Ferrier, Dmitry Bakatin and Sergei Riabtsov; Notivia Ltd, which is beneficially owned by Baring Vostok; Laypine Ltd, beneficially owned by Alexander Abramov; Bladeglow Limited, beneficially owned by Alexander Frolov; and Andrey Gorodilov. Thus, Abramovich is not expected to sell shares in the IPO.

"The proceeds from the primary component of the offering will be used to accelerate the Group's development by financing organic growth, investments in further digital initiatives, potential value-accretive acquisitions and the possible repurchase of shares following the results of stabilisation in connection with the offering," Renaissance Insurance said.

The insurer has selected Credit Suisse, J.P. Morgan and VTB Capital to act as joint global coordinators and joint bookrunners, and BCS Global Markets, Renaissance Capital, Sberbank and Tinkoff are acting as joint bookrunners.