Page 81 - bne IntelliNews Country Report: Russia Dec17

its GDRs from the London Stock Exchange , Kommersant daily reported on November 13. Currently 89.5% of the group is controlled by the family of its founder Igor Babayev, after it bought a 21.05% stake for RUB12bn ($200mn) from the second-largest shareholder, leading Russian fund Prosperity Capital Management. Another 8% in the group is controlled by Cherkizovo's partner in Tambov Turkey venture, Spanish Grupo Fuertes. Cherkizovo is one of Russia's largest producers of meat products, with 10% and 5% market shares in poultry and pork segments, respectively, making it the second- and third-largest producer in those segments, according to company's estimates cited by Kommersant .
Russian metals, retail, construction, and IT firms may hold initial public offerings (IPOs) in 2018 , Dmitry Bolyasnikov, executive director for equity capital markets at VTB Capital, told PRIME on November 10. “If we look at the pipeline (of IPO deals) that is building up now, we may see industries like metallurgy, retail, construction, IT. I think that the portfolio of transactions will be more diversified from the point of view of industrial sectors than it was this year,” he said. In 2017, deals with metals companies dominated the market, mainly due to higher prices for their products. As of today, the volume of deals on the equity market with shares of Russian companies has already exceeded the figure of 2016, and it may top $6.5bn in 2017, he said. “This year we had many deals of $200–300mn, and for 2018 to exceed the result of 2017 there should be larger deals of $700mn to $1bn or more, like the IPO of En+ Group,” he said.
Russia's largest lender state-controlled Sberbank broke its ordinary share price record of RUB200 on November 7 on Moscow Exchange, cementing its status as country's most valuable blue chip in terms of capitalisation. The market capitalisation of Sberbank reached RUB4.5 trillion ($76bn), well ahead of state-controlled oil major Rosneft with RUB3.5 trillion and gas giant Gazprom with RUB3.1 trillion.
Russian steel major Severstal is to offer 18mn shares and GDRs or a total of 2.1% of its capital via accelerated book-build, the company said on November 8 when the proposed stake was valued at $270mn. The shares will be offered by Severstal's controlling shareholder tycoon Alexey Mordashov, who will cut his stake in the company to 77% after the deal.
Opening the trading in shares of Russian metals and energy major En+ to retail brokers on London Stock Exchange on November 8 generated a lot of interest , as the smaller players instantly increased the capitalisation of the company by $200mn, Vedomosti daily reported in November 8. En+ just held the largest Russian IPO in London in five years, and for the first three days following the float trading with the shares was restricted to investment funds and qualified investors that saw the capitalisation of the company fall by 5% to $7.4bn. The first unrestricted trading day allowed brokers to participate and opened with 3% bump in En+ GDRs increasing the capitalisation to $7.6-$7.8bn during the trading session. En+ was valued at $8bn for the IPO, raising $1.5bn at the offering, out of, which $500mn was bought by the China Energy Company (CEFC) from existing shares of Russian tycoon Oleg Deripaska. Other investors acquired a total of $1bn of En+ stock, including substantial bids from the Qatar Investments Authority, Capital Group and the Russian Direct Investment Fund (RDIF).
Russian manufacturer of high-speed transceivers Aquantia held an IPO
81 RUSSIA Country Report December 2017 www.intellinews.com