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. 

SPO Of Russian Alcohol Producer "Synergy"

The placement price of shares of vodka producer Synergy is defined in the $ 36 - at the lower end of the range, a source close to the placement reported.
The range of secondary offering (SPO) is $ 36-40.
Synergy placed 15 percent of existing shares to repurchase securities of the shareholders of the new issue. Total for placement are offered 2.9 million of common shares, selling shareholder is Sword Enterprises Ltd.
The source said that the company proposed to place the entire volume. This corresponds to the proceeds from the SPO to $ 104.4 million.
Organizers of the SPO are VTB Capital and Renaissance Capital.
The proceeds from secondary public offering of funds (excluding the cost of accommodation) will be used by the company to reduce debt, as well as on potential transactions in mergers and acquisitions, the exit direction in the price segment, where products are not yet represented.
Synergy is the second largest producer of alcoholic beverages in Russia by production volume and occupies 9 percent of the country's legal market with shipments of 10.131 million dal (by Rosstat's data in 2009).

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Eurobonds of Russian RZD on Irish Exchange

Russian railway state monopoly RZD completed the debut issue of seven-year Eurobonds worth 1.5 billion dollars at the rate coupon of 5.739% per annum. Securities listed and traded on the Irish Stock Exchange, said on Friday press office of RZD. 

Issue of Eurobonds - loan participation notes issued by RZD Capital Limited, established for the purposes of Eurobonds in Ireland. Eurobond issue was implemented under the Regulation S of the Securities Act of the United States, the report said. 

Investment banks, Barclays Capital, JP Morgan Securities Ltd and VTB Capital acted as joint lead arrangers and book-runners, and TransCredit Bank was the organizer of the Eurobond issue, reminded the press service of the RZD.

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Russia's Eurobond Road Show in April

Russia will hold a road show of the first in the last 12 years Eurobond issue on 21-22 April 2010 in New York, said Finance Minister Alexei Kudrin.

"In 2010, net borrowing could reach 1.5 trillion rubles, excluding repayment on domestic and foreign markets. This is a large volume", - Kudrin commemted the Government's plans. 

By early April the Ministry of Finance planned to finalize the placement by rule 144A, that means among American and European investors. 

Deputy Finance Minister Dmitry Pankin said that Russia can produce the 30-year  and 10-year Eurobonds, because the market is in demand for long-term instruments. Lead Managers are: Barclays Capital, Citibank, Credit Suisse and Russia's VTB Capital.

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