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bne Invest
April 5, 2019 www.intellinews.com I Page 11
Russia's largest grain freight operator RusTransKom to hold IPO
Russian rail operator RusTransCom, specialising on transportation of grain, mineral fertilisers,
and timber, plans the first IPO of a Russian company in almost two years on the London Stock Exchange (LSE) and hopes to raise $300mn, the company said on April 1.
Since the beginning of 2019 there have been a number of deals carried out on Russian equity market, after no deals since August 2018. This included sales of equity in Norilsk Nickel and Evraz by Roman Abramovich and Alexander Abramov, the sale of minority stake in the TCS banking Group by its owner Oleg Tinkov, and preparation of a SPO by meat major Cherkizovo.
Molesto Investments of Konstantin Sintsov and Konstantin Zasov that together hold 95.7% in the freight operator could offer part of RusTransCom
shares. RusTransKom has put two independent directors on the board ahead of the IPO - Marcus Rhoads (former and Ernts & Young) and Will Ebott (BoA Merrill Lynch, Renaissance Capital, VTB Capital, Deutsche Bank/UFG).
RusTransCom operates 68,000 gondolas, more than half of which for the transportation of grain. In 2018 the company transported 60.7mn tonnes of grain, made revenues of RUB51.5bn, net profit of RUB11.6bn, and Ebitda margin of 60%.
Analysts and market participants told Vedomosti daily that the operator is riding the momentum of booming Russian agriculture and record-high grain crops. Previous reports suggested that the company will use the funds raised to invest in organic growth of its main business.
Russia's AFK Sistema investment major plans to IPO pharma asset
Russian multi-industry investment conglomerate AFK Sistema says it plans to IPO its pharmaceutical asset OBL Pharm (Obolenskoye) that was merged with Binnophafm, without providing the timeline for the initial public offering.
After not a single IPO has been held in Russia in 2018, a number of companies have already lined up initial and secondary public offerings on a favourable market.
Sistema acquired 11.7% in OBL Pharma in December 2018 for RUB1.83bn, jointly with
a consortium of VTB Bank and OBL Pharm's management buying 95.14% in the company for RUB15.5bn. Sistema planned to merge the
asset with Binnopharm in which it holds 74% to "significantly improve the value of the business."
OBL Pharm produces 150 different drugs on a factory with capacity of 330 tonnes, with another plant with 900 tonnes capacity to be built this year. The company made RUB6.1bn revenues in 2017, with net profit of RUB1.3bn.
In 2013 Sistema said it will invest up to $1bn into its healthcare business. Apart from OBL and biotech producer Binnopharm, the main healthcare assets of the holding is the 75% minus 1 share in Medsi private clinic chain, which has recently became the leader on
a competitive market.