Uralkali IPO Tops $1 Billion
The first initial public offering by a Russian chemical company ends today. In spite of the crisis on the financial markets, which has been the cause of the cancellation of several IPOs in Russia, OAO Uralkali stock was in such high demand that the company increased the packet for sale almost by 50 percent, to 14.38 percent of the total. The stock will be sold at the top price range, and Uralkali owner Dmitry Rybolovlev will receive over $1 billion. Analysts credit conditions on the potassium market and correct pricing for the success.
The stock placement on the LSE and RTS, organized by Citibank, Renaissance Capital and UBS, was overbooked fivefold. The sales price will be announced tomorrow. The company set a price range of $2.80-3.50 per common stock and $14-17.50 per GDR. The company's capitalization rose 10 percent, to $7.88 billion, during the time of the IPO road show.
Rybolovlev, who is chairman of the board of the company, owns 77.9 percent of the company through the Cypriote Madura Holding Ltd. Another 2.1 percent belongs to his partner Vladimir Shevtsov. That package is in the process of purchase by Rybolovlev. An IPO was planned a year ago, but Rybolovlev cancelled it due to the low prices offered by investors. Analysts say that the package was overpriced at that time. Potassium is now in high demand on both the chemical and fertilizer markets.
www.kommersant.com
All the Article in Russian as of Oct. 11, 2007
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