IPO of Russian Agricultural Holding Valars Group

Russian agricultural holding Valars Group is planning an IPO on the Warsaw Stock Exchange in May 2011. The company expects IPO in early May, following reports for 2010. 


The organizer of the IPO is Deutsche Bank. Soon the company may sign a mandate with another bank.
Valars Group plans to sell 40 percent of shares and generate $ 300 million. 


According to preliminary estimates the cost of the company Valars Group is more than $ 1 billion.

IPO Of Chelyabinsk Pipe Rolling Plant

Chelyabinsk Pipe Rolling Plant is waiting capitalization at the amount of $ 2,0-2,7 bln after the intended  IPO in London.

One of the largest pipe manufacturers in Russia - Chelyabinsk Pipe Rolling Plant  intends after the IPO in London to get the capitalization in the range of $ 2,0-2,7 billion. Price range per share of Chelyabinsk Pipe Rolling Plant  for the placement is defined in the range of $ 3,50-4,60 per share and the same amount is for a receipt, the company reported. 


The main shareholder of Chelyabinsk Pipe Rolling Plant can raise $ 157,5-207,0 million from the sale of the existing shares and receipts in the IPO, and two subsidiaries of Chelyabinsk Pipe Rolling Plant may raise $ 472,5-621,0 million.

Rusagro Plans IPO In April 2011 In London

 Russia's largest producer of sugar agroholding Rusagro resumed preparations for the IPO and plans the placement in April 2011 on the London Stock Exchange, Reutersreported. 


the selling shareholders will be a Cyprus subsidiary of Rusagro - the company Matchzone Holdings Limited. In late December Matchzone increased its share in Rusagro to 14,3 percent of shares. Traditionally, the minimum amount companies attract during the IPO in London is about $ 400 million. 


Organizers of the placement were chosen last year. They are Renaissance Capital, Credit Suisse, Alfa-Bank and Sberbank.

Groupon Attracted $1 Billion By IPO

The American Internet company Groupon providing services in the field of online retailers, has completed the process of raising funds through private placements of shares in the amount of 950 million dollars to raise funds and repurchase shares from a number of former investors and to continue business expansion of Groupon outside the U.S. 


New investors are private individuals and various companies, including the Russian Mail.ru Group. Financial advisor for placement was the company Allen & Company LLC. 

IPO of RTS Stock Exchange

RTS Stock Exchange  plans to conduct additional issue of ordinary shares in an amount of 47.9 million units under the IPO, which would increase the share capital by 29.9%. 

RTS plans to split shares, in which each security with the nominal value of 100 rubles will be converted into 100 ordinary shares with par value of 1 ruble. As a result, the number of authorized common shares will increase to 160 million units.
The authorized capital of RTS will be increased through the placement by public subscription of new ordinary shares in an amount of 47.999 million units. 


Shareholders of the RTS, the holders of ordinary shares will have a preferential right to purchase the additional shares in proportion to the number of their ordinary shares.

IPO Of Metalloinvest In 2011

Metalloinvest in 2011 will sell 20-30% of its shares by IPO. The company is ready for listing in the next year, but deployment dates depend on market conditions. Metalloinvest plans to raise $ 3.8 billion to develop the giant Udokan copper deposit in the Trans-Baikal Territory.

Metalloinvest won the competition for the right to develop Udokan in 2008. For two years the company held the first stage of exploration on the field , and two weeks ago announced the tender for the second one.

Udokan  which ores contain 60% of copper reserves of Russia or 20 million tons can make Metalloinvest one of the ten largest producers of nonferrous metal in the world.

Construction of infrastructure at the field should begin in 2012 and in 2014 production of at least 12 million tonnes of ore per year will be started, in 2016 - 36 million tonnes of ore per year.

The company is expected to produce 474,000 tonnes of copper per year with a fair extracting of 277 tons of silver.

Mail.ru Group's IPO Is Over $1 Billion

Russian internet company Mail.ru Group and its shareholders gained from the sale of its shares during IPO more than $ 1 billion. To overcome psychologically important level helped the organizers of IPO - Morgan Stanley and VTB Capital, which implemented the option of redistribution and additionally purchased 3,290,000 ordinary shares of Mail.ru Group for $92 million. 


Thanks to the exercise of the option the total proceeds from the placement of shares and global depositary receipts (GDR) amounted to $1.003 billion when the share of free float (free float) of Mail.ru Group has reached 18,4%, said the Internet holding. 


During the IPO Mail.ru sold 36.22 million GDR (each receipt represents 1 ordinary shares) at a price of 27.7 dollars, that is on top of the range. Company's market capitalization amounted to 5.7 billion dollars, making Mail.ru Group  the largest traded Internet company in Europe. 


Earlier Mail.ru Group reported that funds from the IPO will be partly directed to purchase additional 7.5% of the capital social network Facebook for 112.5 million dollars. As a result, the share of Mail.ru in the social network Facebook will increase to 32.49%. Moreover, the company also secured an option to buy a similar package (7.5%) over the next year. Thus, at confluence of certain circumstances in 2011 Mail.ru Group's share in the network Facebook will be communicated to 39.99%. 


The company Mail.ru Group belongs to Yuri Milner, Gregory Finger and Alisher Usmanov. Previously, the company called Digital Sky Technologies (DST), but the pre-IPO, it was renamed. Between 2005 and 2009 the company (then known as the DST) has attracted and invested over $ 1 billion in more than 30 companies. 


Mail.ru Group owns the eponymous post and entertainment portals, instant messaging services ICQ, a social network Odnoklassniki.ru. The company also owns stakes in a social network Facebook, payment system Qiwi, a discount service Groupon and producer of games for social networks Zynga. 

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. 

IPO of Mostotrest - Largest Russian Bridges Constructor

The largest bridge-building company in Russia Mostotrest announced today the results of the subscription to their shares in their initial public offering (IPO). The company's shares will be placed on the bottom of the price range - 6,25 USD / pcs. Thus, the market capitalization of Mostotrest is $1.55 billion.

The total amount received during the placement is about $388 million. 40% will be spent to purchase additional shares of the company. The remaining funds be directed for general corporate purposes, including acquisition of production facilities and equipment. The share of the company's shares in free float immediately after placement and public offering will be about 36%. 

Ordinary shares of the company are listed on the "B" on the RTS stock exchange and admitted to trading on the MICEX. Start of Mostotrest's shares trading on MICEX is scheduled for today.

Joint global coordinators and joint book-runners of placing are Deutsche Bank, JPMorgan and Troika Dialog. TCB Capital is a joint lead manager. 

JSC Mostotrest is the largest Russian company in the construction and reconstruction of railway, highway and city bridges and overpasses. It is the first company in the sector decided to go public. 

The main shareholder  of Mostotrest is the company Mark O'Polo (50,3%), which enefetsiaries are  managers of the companies N-Trance, E4 Group and their partners.


In March 2008 the structures of RZD - the funds Welfare and RWM Capital - became the owners of a blocking stake (25% plus one share) of Mostotrest. 

In I half of 2010 revenues of Mostotrest under IFRS amounted to 31 billion 361 million rubles. Activities of the company provide 14 branches and five subsidiaries and affiliates operating in the territory of Russia. 

Russian Market of IPO / SPO January-June 2010

The following study covers the processes of a public offering (IPO / SPO / PO) ordinary / voting shares in companies across a wide and limited circle of investors with the passage of a listing on the Stock Exchange for the period January-June 2010. 

Results for the first six months of 2010 are encouraging and justify the hopes of 2009 - "We hope for growth." 


Quantitative volume (13 offerings) is close to the maximum value for all time of existence of the Russian market of IPO / SPO (in 2007), and the value ($ 3.9 billion) is less than just the same peak in 2007 (which were related accommodations of  VTB, Sberbank and PIC, Uralkali, etc.). 

It is worth noting that the results of the first half of 2009 reflect the dynamics of the entire Russian stock market.  RTS and MICEX and market of IPO / SPO showed values comparable to 2004 in this period. 


Summarized data of the Russian market: 

• 13 - Quantitative market volume;
• $ 3,939 million - the value of the market;
• $ 302,9 million - the average volume of distribution;
• 11,9% - the weighted average of shares placement;
• 53% of the value of the market posted on the Hong Kong Stock Exchange (HSEx);
• 57% of the value of the market falls to accommodate Rusal;  
• 32% of the quantitative amount of the market is the fuel industry; 
• Highest Rated consultants:
Renaissance Capital - The organizer of placement and placement underwriter; 
Cleary Gottlieb Steen and Hamilton - Associate of the Issuer; 
Linklaters - Associate Consultant; 
KPMG - Auditor of the Issuer;
Financial Dynamics - IR-consultant of the Issuer.


By materials of Analytical Group ReDeal Project 

Results of the Forum IPO and SPO 2010 in Russia

Forum IPO & SPO-2010 - Russia's largest annual forum on the problems and prospects of the organization of initial public offerings by Russian companies  took place on September 23 2010 in the Hall "Valdai" of the Marriott Tverskaya hotel.

Organized against the background of the Russian IPO market growth, the forum at a qualitatively new level continued dialogue on issues of raising capital in Russia and abroad. 


The main difference between this year's meeting is the emergence of a new experience in organizing of IPO. The event participants were given the opportunity to obtain information on the development of the IPO market regulators, stock exchanges (both Russian and foreign), financial advisers and the issuers themselves. 


The forum also presented an overview of new financial products and instruments offered by Russian issuers. Particular attention is given to new services intended to promote IPO of companies with an average capitalization (mid-caps).

At the forum there were professionals engaged in the process of the IPO and SPO issuer. Delegates and speakers of the Forum IPO & SPO-2010 were representatives of the Federal Financial Markets Service, the Central Bank, Ministry of Finance, Economic Development, FAS, and the largest public companies, banks, underwriters, and the organizers of IPOs, legal and consulting firms, rating agencies, investment companies, and most importantly - representatives of stock exchanges, both Russian and foreign.

Russian TransContainer Intends To Attract In IPO 12.8 Billion Rubles

Shareholders of TransContainer at an extraordinary meeting decided to place under the IPO 5557908 shares with a nominal value of 1 thousand rbl., company's materials reported.

Each share was decided to sell at a price not less than 2,311 rubles. Thus, in the IPO the company intends to attract at least 12.84 billion rubles. Placing is scheduled to take place before the end of 2010.

Annual Forum IPO & SPO 2010 in Russia

Annual Forum "IPO & SPO-2010" - is Russia's largest conference dedicated to the problems and prospects of the organization of the primary public offerings of Russian companies, will be held on September 23 in Moscow, said in a press release.  The forum organizers are the Institute of Financial Markets (IRFR). 

"Forum  "IPO & SPO-2010" will take place against a background of growing Russian market IPO, and will continue to dialogue on issues of raising capital in Russia and abroad on a qualitatively new level. Event participants will have the opportunity to obtain information on the further development of the IPO market regulators, representatives of Russian and foreign exchanges, financial advisors and issuers themselves ", - the report said. 

The forum will also provide an overview of new financial products and instruments offered by Russian issuers. It will focus on new services intended to promote the IPO of  companies with an average capitalization (mid-caps). 

"Among the delegates and speakers of the Forum "IPO & SPO-2010" are representatives of CBR, Federal Financial Markets Service, the Ministry of Finance, the Ministry of Economic Development, FAS, as well as the largest issuers, banks, underwriters, and the organizers of IPOs, legal and consulting firms, rating agencies, investment companies and exchanges ", - stated in a press release.

Net Profit of Rusal in 2010

Net profit of RUSAL by  International Financial Reporting Standards (IFRS) in the I half of 2010 amounted to 1 billion 268 million dollars compared with a net loss of $ 868 million in I half of 2009., the press service of the company reported.
Revenues for the period increased by 41,6% - up to $ 5.321 billion rise in the company connects with an increase in aluminum prices.
Operating profit for Rusal in the I half of 2010 amounted to 1 billion 034 million dollars compared with a loss of $ 487 million dollars in the I half of 2009. Operating margin was 19%.
Adjusted data EBITDA in the I half of 2010 increased to 1 billion 325 million dollars compared with a negative adjusted EBITDA of $ 144 million, up I half of 2009. Adjusted EBITDA margin was 24.9%.
Investment in enterprise development and construction of new assets amounted to 457 million dollars, of which 208 million dollars were used to refinance the loan for the project BEMO, $ 52 million from funds raised during the IPO, were used to repay the loan on a BEMO According to the agreement on debt restructuring for Rusal.
The market value of company-owned stake in OAO GMK Norilsk Nickel, as at 30 June 2010 amounted to 7 billion 168 million dollars compared to 6 billion 707 million dollars at 31 December 2009. Thanks to positive dynamics of growth stocks in the I half of 2010 .