| Other Photos |
 |
|
 |
Uralkali Makes It to a Second Round
The second attempt by Uralkali to make an international stock issue was more successful than its first IPO. The subscription book was filled on the first day of the road show, and demand exceed supply at top price ($3.50). Russian investors are still skeptical of the company's ability to sell its stock at full price, but analysts predict that it will have success abroad.
The main seller is Madura Holding Ltd, the main beneficiary of which is Uralkali chairman Dmitry Rybolovlev. The price range is $2.80-3.50 per share and $14-17.50 per GDR. Thus, the issue is worth $594.7-743.4 million. Citi, Renaissance Capital and UBS are the organizers.
Russian experience shows that double subscription does not guarantee full placement at the higher range. The stock gained 3.2 percent on the RTS yesterday to reach $3.40. Analysts say that it is speculative buying, however, and does not include large investments. Foreign investors may reach differently. There are few companies in that sector in the world. Stock of the Canadian Potash Corp. cost considerably more on the London Stock Exchange. Companies in sectors that are little represented on international markets are traditionally in high demand.
The subscription book may be closed on October 15. To guarantee full sales at the top price, the subscription should be oversold 5-6 times.
www.kommersant.com
All the Article in Russian as of Oct. 05, 2007
|
|
|
