Investors flock to cheap Russian IPO
RUSSIAN port operator Global Ports has received enough orders for 75 per cent of the shares it plans to offer in its up to $572m (£355m) London listing.
The container terminal operator, a unit of Russian freight group N-Trans, began a roadshow to drum up interest in the company amongst investors just three days ago.
Global Ports had been priced at between $14.70 and $16.10 per global depository receipt (GDR).
The list price puts shares in the company at a deep 28 per cent discount to the mid-point of a recent valuation made by analysts, which could have attracted investors to the company.
Investors are said to be keen on the float, given the track record of Global Ports’ owners and the reasonable price of its shares.
N-Trans has successfully listed in London before, having floated its rail freight unit Globaltrans in 2008.
London’s market for new share offers has faltered in recent months and has dashed the listing plans of several Russian firms.
Just four companies from the country, including private bank Nomos and real estate developer Etalon, have succeeded in listing this year.
N-Trans will sell existing shares in its sale, while Global Ports itself is eyeing proceeds of about $100m in new shares to be sold in the float.
The owners of the company, which runs five container terminals across Russia and Finland, also hold an over-allotment option to take the total proceeds of the share sale up to $629m.
Books are due to close on the Global Ports IPO as early as 23 June.
Deutsche Bank, Goldman Sachs, Morgan Stanley and Troika Dialog are joint global coordinators and joint bookrunners.