n real estate developer Etalon Group aims to raise up to $650 million from its London IPO, more than previously stated and valuing the company at as much as $2.51 billion.
Etalon, which builds residential property in Moscow and St Petersburg, said in a statement on Monday a sale of new shares would raise $500 million, while existing shareholders would sell stock to raise another $150 million.
The price range for the placing will be $7 to $9 per share, in the form of Global Depository Receipts (GDRs).
Etalon is one of four Russian private issuers trying to complete London floats to raise a combined total of more than $3 billion -- more than half the amount raised by Russian companies in the whole of last year.
The group follows mobile phone retailer Euroset, which is looking for up to $1.5 billion including a huge windfall for its owner, and sugar and pork producer Rusagro, which hopes to complete a $300 million offering on Friday.
Mid-size bank Nomos is yet to announce the price range for its float, which is expected to raise up to $700 million.
Europe's IPO market has come alive in the pre-Easter period, with a potential $10 billion listing by Swiss commodities trader Glencore the much-anticipated highlight.
SUEK, Russia's largest steam coal miner and a long-standing IPO candidate, is planning a full listing of its shares in London in June, The Independent on Sunday newspaper said.
Another Russian firm keen to tap equity markets is fast-growing retailer Magnit, which is seeking around $500 million from a secondary placement of new shares, according to Russian daily Vedomosti.
Etalon said existing shares would be sold by controlling shareholder the Zarenkov family, private equity group Baring Vostok and Gazprombank Asset Management.
The company will have some 28 percent of its shares in free float, assuming no exercise of an over-allotment option and pricing at the midpoint of the price range, it said.
The over-allotment will be offered by the Zarenkovs and amounts to about 15 percent of the total offering.
The group, which generated revenue of around $700 million in 2010, plans to use the proceeds of the IPO to finance the acquisition of new land plots, with the balance used to finance construction costs of new and existing projects.
Credit Suisse, Renaissance Capital and VTB Capital are acting as joint bookrunners for the offering.
(Editing by David Holmes and Sophie Walker) Keywords: ETALON IPO/
COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.