Page 63 - bne magazine March 2017 issue

bne March 2017 New Europe in Numbers I 63
Russian IPOs
Russia’s equity market has come back to life with about $1.9bn worth of securities issued in just the last three months.
Most of that was an IPO by Russia’s iconic toy company Detsky Mir (Children’s World), which closed the country's second-largest IPO in three years on February 8, selling
one third of its shares for RUB21.1bn (€333mn) on Russia’s Moscow Exchange (Moex). The IPO values the company, which specialises in toys and children’s goods, at RUB62.8bn (€991mn), also making it the biggest IPO in the Europe, Middle East and Africa (EMEA) region so far this year.
The biggest previous IPO was of Russneft, a second-tier oil company that belongs to the Gutseriev family, which was half the size. The Gutserievs have built up a multi-billion business by targeting and developing oil fields that were too small to
Russian IPOs in last five years
interest Russia’s oil behemoths. Russneft raised RUB32.4bn ($500mn) in November 2016 by selling off 20% of its shares on the Moscow Exchange (MOEX).
Russia's share issue market boomed in the noughties when the number of IPOs rose steadily to a peak of 32 in 2007, almost evenly split between the LSE and MOEX, but tumbled to a mere six issuances in 2008, almost all on MOEX, the year the international crisis started. “There is a huge backlog of companies that want to IPO and if the market conditions change then there will be a wave of issuances,” says Chris Weafer, CEO of Macro Advisory.
Since the start of 2010 a total of 267 companies announced IPO plans, according to PBN Hill + Knowlton, of which 45 have actually happened, 12 were cancelled and another 210 are still pending.
Company name
Date
Sector
IPO/SPO/ Private placement
Stake
Value (LC)
Value (USD)
Exchange
Implied company valuation (LC)
Implied company valuation (USD)
Floatation price/share
Detsky Mir
Feb 7 2017
retail
IPO
33?
RUB21bn
$355mn
MICEX
RUB62.8
$1bn
RUB85
Rosneft
Alrosa
Moscow Credit Bank (MCB)
Lenta
TCS group holding pls
Qiwi Megafon Yandex
Jan 4, 2017
July 1, 2016
July 1, 2015
HC PP 19.5 RUB692bn
SPO 10.9 RUB52.2bn
finance IPO 18.8 RUB13.2bn
€10.2bn -
$813mn MOEX 478.8990826
$238mn MOEX RUB70.2bn
$952mn LSE
LSE $3.2bn
$213mn NASDAQ $1.7bn LSE $1.3bn NASDAQ
$2.5bn
$48mn
$4.3bn
$888mn
$11.1bn $19.60
$8bn $25
Russneft
Nov 25, 2016
Hydrocar- bons
IPO
20
RUB32.4bn
$500mn
MOEX
RUB161.8bn
RUB550
Novorossiysk Grain Plant (NGP)
Dec 1, 2015
agro
IPO
30
RUB3.7bn
$55mn
MOEX
RUB34.5bn
7458.715596
RUB512
United Wagon Company
Apr 1, 2015
transport
IPO
12.22
RUB9bn
$180mn
MOEX
RUB73.9bn
$1.5bn
RUB700
Mar 1, 2015 retail IPO Oct 22, 2013 IPO
May 1, 2013 TMT IPO Nov 1, 2012 TMT IPO May 1, 2011 TMT IPO
22.1
11.7 16.25
$1.09bn
RUB65
RUB3.62
$9.85 $17.50
Alrosa
Oct 28, 2013
IPO
16
$1.3bn
MOEX
RUB258bn
$8.12bn
RUB35
Luxoft
June 1, 2013
TMT
IPO
12.6
69.57mn
NYSE
$554.20
$17
$17
MOEX
Feb 15, 2013
IPO
RUB15bn
$498mn
MOEX
RUB126.9bn
$3.82bn
RUB55
EPAM
Feb 1, 2012
TMT
IPO
33%
$72mn
NASDAQ
$493.1mn
$12
Source: Russia's share issue market boomed
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