By Ivan Anderzhanov in Moscow
The investment banks VTB Capital and Morgan Stanley have completed a $526m SPO placing primary shares of the Russian retailer Magnit as well as the shares of existing shareholders.
VTB said a wide range of UK, European and US institutions participated in the offering with the book oversubscribed at the top of the range.
The deal will result in an increase of a total free float of up to 47.8%. GDRs are traded on the London Stock Exchange and ordinary shares on RTS and MICEX.
Mikhail Butrin, co-head of global banking at VTB Capital, said demand for the offering from investors allowed them to price the offering at a premium to the GDR’s Wednesday close. He said: “The company’s leading position in the Russian food retail market along with its strong operational and financial performance resulted in investors’ rushing to buy the stock”.
A total of 5,680,000 newly issued ordinary shares in the form of GDRs have been placed to various international institutional investors, with the ordinary share price being $65 and GDR price being $13.
In addition, existing shareholders applied to execute their pre-emptive rights for 2.4m shares, and if paid the company will receive additional $157.7 m in proceeds.
VTB Capital and Morgan Stanley acted as joint global coordinator, manager and bookrunner for the deal.
