Russia global port eyes IPO
The company, a unit of private transportation and infrastructure holding group N-Trans, said that it would issue US$100 million of new shares and N-Trans would sell an unspecified number of existing shares to deliver a free float of 25 per cent.
A source close to the deal said that analysts had calculated a ‘fair value’ for the company of around US$3 billion, meaning a total of US$750 million could be raised from the IPO if investors agree on the sums.
‘There will be a significant secondary component to the offering, although the public market will determine the final valuation,’ the source told Reuters.
The company, which controls around 30 per cent of Russia’s container ports market, said that it will invest the net proceeds from the sale of the new and existing shares in its ports operation.
Russian companies have raised US$3.4 billion from IPOs in 2011 to date, compared to around US$5.5 billion for the whole of last year.
The standout deal was the blockbuster US$1.4 billion Nasdaq IPO of Russia’s most popular search engine Yandex last month, but there have been more cancellations than successes as investors remain wary of perceived risks surrounding Russian firms.
Global Ports could become a third successful IPO from the N-Trans company following the floats of freight operator Globaltrans Investment and road and bridge operator Mostotrest.
Mostotrest raised US$388 million in Moscow last November, although the shares have since lost ground. — Reuters