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Evraz Group Continues Stock Sales
Evraz Group co-owner Alexander Abramov announced yesterday that the group intends to make a supplemental placement of 17 percent of the company's stock on the London Stock Exchange. It placed 8.5 percent of its stock for $422 million on the London market in June. Novolipetsk Steel also announced a coming IPO of 10 percent of its stock on the same stock market. The combined worth of the two upcoming deals is to be more than $1.8 billion.
Analysts say that the new spurt of activity on stock market by metallurgists is due to more favorable conditions on the raw materials market, particularly in the steel market. This is, therefore, a key moment. Evraz stock is expected to be offer at its current price of $17.80-18 per GDR. No marked price increase is expected before the offering, since it has already risen from $14.50 in the last four months. That offering, therefore, will be worth about $1 billion. The Novolipetsk Steel offering is harder to estimate. IPOs on Western markets usually result in an increase in the price of the stock. If that is not the case, it will be worth about $800 million. The fact that the IPO was announced far in advance works against the likelihood of a price increase, analysts say.
www.kommersant.com
All the Article in Russian as of Oct. 05, 2005
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