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 "Lukoil" Bonds Issue

Currently, an agreement concerning the purchase of Lukoil whole package from an American company

Federal Financial Markets Service (FFMS) of russia has registered 11 bond issues of OAO "LUKOIL" totaly amount to 100 billion rubles, according to the regulator.
There will be public subscription of bond issues of the series 05-15: series of 05-08 - in the amount of 5 billion rubles each issue,  series of 09-14 - 10 billion rubles,  series of 15 - 20 billion rubles.
The Board of Directors of LUKOIL on June 24, 2010 adopted decision on the deployment of these bond issues. The organizers of the issues are "Troika Dialog" and "Raiffeisenbank".

LUKOIL's authorized capital amounts to 21.26 million rubles, it is divided into ordinary shares of par value of 0,025 rubles. American "ConocoPhillips"  ownes 20% stake in Lukoil, the company's president Alekperov directly and indirectly holds more than 20% of the shares, vice-president Leonid Fedun owns about 10% of the shares. "ConocoPhillips" in late July announced plans to sell its entire stake.