TransContainer's IPO Attracts $400 Million

The placement price per share of TransContainer in the initial public offering (IPO) announced at $80, $ 8 per GDR (global depositary receipt).While 10 GDR certify the rights in respect of one share, TransContainer reported. 


Thus, the RZD's subsidiary was placed close to the bottom of the announced range (7,9-9,9 dollars per GDR). On the stock exchanges in Moscow and London it was planned to place 5 million 2 thousand 118 existing shares of the company. Based on the offering price, TransContainer attracts a little more than $ 400 million.

"Listing in London and Moscow is an important strategic step for TransContainer, but the deal will be a milestone in the ongoing reform of the railway industry in Russia. We will make every effort to develop TransContainer as a public company and increase its shareholder value" -, the words of its CEO Peter Baskakov are given in press release. 


Start of conditional trading GDR on the London Stock Exchange is expected today. Admission to the GDR's official list of the Financial Services and Markets of the UK as well as the beginning of unconditional trading GDR on the main market of London Stock Exchange under the symbol "TRCN" is expected on November 12, 2010. 

Shares are included in the list "И" of RTS and the list "И" of MICEX Stock Exchange. Start of trading on RTS and MICEX under the symbol "TRCN" is also expected on November 12, 2010.
TransContainer was registered in March 2006 on the basis of the center for cargo transportation in containers TransContainer (Branch of RZD) with registered capital of 13.9 billion rubles.


Before the IPO RZD owned 85% minus 1 share of TransContainer, the European Bank for Reconstruction and Development (EBRD) - 9,25%, Moore Capital Management, LLC - 2,5%, GLG Emerging Markets Fund - 2,5%, Troika Dialog Investments Limited - 0,75%. Net income of TransContainer under International Financial Reporting Standards (IFRS) for the I half of 2010 amounted to 197 million rubles,  revenue - 9.94 billion rubles. 

EBRD Will Buy Yugoria Insurance Company In Russia

The European Bank for Reconstruction and Development may become a co-owner of the Yugoria state insurance company. The government of Yugra, which owns 100% of the company, is talking to the bankers about issuing additional shares. 

Vera Dyudina, the deputy governor of the region, told that Yugoria is not a core asset and that the government is constantly asking the company's directors to raise its share capital so that the company can be privatized, which would be advantageous for the Yugra government's budget. Offers have been made before to obtain shares or even an entire block of shares in Yugoria, but the price didn't match the insurance company's market value.

According to Vladimir Volkov, a member of the board of directors of the Yugoria insurance group, foreign auditors valued the company at 7 billion rubles in 2009. A new estimate scheduled for the end of September 2010 will probably be significantly higher than the first. 

 

Between January and June of this year, the Yugoria insurance group took in 3.318 billion rubles in premiums, an increase of 5% over the same period in 2009. The company paid out an estimated 2.036 billion rubles for all claims. 80% of Yugoria's fees and payments went to 54 of the constituent political entities of the Russian Federation where its branches operate, and the other 20% went to its "home" region. According to the results from 2009, among Russian insurance companies, the Yugoria insurance group was in 14th place in terms of assets.