Page 118 - RusRPTApr21

The Sovcomflot (SCF) BoD has recommended that dividends be paid from the 2020 results. The total amount of dividends recommended is R15.8bn, which is R6.7 per share and implies a 7.3% dividend yield. This amount is equal to $225mn translated into rubles at a rate based on its IFRS results (SCF prepares its IFRS results in dollars and in rubles, and the FX rate used to calculate the dividend was calculated as ruble-denominated IFRS net income divided by dollar-denominated net income).
8.3.3 ECM news
M.Video announces long-awaited SPO. Ericaria Holdings Ltd. (owned by Safmar) intends to offer the market c. 24.28mn M.Video shares, which is equivalent to c. 13.5% of the company’s share capital. Bookbuilding for the placement started yesterday, 9 March. Global coordinators will determine the final number of shares to be offered, as well as the offering price, allocations and the date of the book closure. Bloomberg wrote that the book will close tomorrow, 11 March, while the pricing of the shares will occur on Friday, 12 March. It is expected that the lock-up period should be 180 days for the company and the selling shareholder (with the standard exceptions and waivers). Media-Saturn-Holding GmbH, which holds 15% of M.Video, confirmed that it does not intend to sell a significant number of shares during the lock-up period. Safmar’s share in M.Video is expected to decrease from its current 73.5% to c. 60% following the placement. A placement would diversify M.Video’s investor base, bring in marginal buyers and improve its liquidity. This placement should make it a relevant investable story and help it to unlock the fundamental upside that we see in the stock due to its profitable e-commerce exposure, solid growth and attractive dividends. As a reminder, Detsky Mir’s first placement in November 2019 was conducted with a c. 6% discount to the market price. We would expect to see a c. 5-10% discount for M.Video’s placement too, which would imply the size of the deal being c. RUB 17.5- 18.5bn. The company’s free float should more than double from the current 10.4% to c. 24%. We believe the deal presents an interesting opportunity to get cheaper exposure to a lucrative mix of growth and dividends, which should get a proper valuation thanks to improved liquidity and an inflow of new investors.
Russian gold producer GV Gold has decided to postpone its IPO on the Moscow Exchange (MOEX) due to high market volatility, the company said in a statement on March 29. GV Gold’s CEO Vladislav Barshinov said: "We have taken the decision to put the IPO on hold in light of elevated levels of market volatility in both the global and Russian capital markets.” Barshinov added that the company still plans to float when market conditions improve. GV Gold released its IPO price guidance of RUB1,650–RUB2,050 per share on March 23 and intends to offer around 37% of the shares for sale. The company is a top ten Russian gold producer and the fastest growing company in the sector, as profiled by bne IntelliNews in the middle of March before the IPO announcement was made. International markets have been unsettled by a
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