PhosAgro to try London’s IPO market
FERTILISER producer PhosAgro is planning a Moscow and London initial public offering (IPO) worth more than $500m (£305m) next month, the latest in a string of Russian firms to test a lacklustre market for new listings.
Launching the offering yesterday, PhosAgro chief executive Maxim Volkov said the company planned to float 10-15 per cent of existing shares, with Russian politician Andrei Guryev the selling shareholder.
Russian companies seeking to broaden their investor base and raise new capital have been a key source of activity in a tough European market this year, but with mixed results.
Just four firms, including bank Nomos and real estate developer Etalon, have succeeded in listing, while at least seven have had to pull their plans to float after investors baulked at the valuations on offer.
PhosAgro has been given regulatory approval to list 2.6m shares, or 21.35 per cent of its total share capital, in the form of global depositary receipts outside of Russia.
“The main goal of the placement is to get currency for potential mergers and acquisitions” Volkov said.
PhosAgro, which joins Russia’s Global Ports in seeking to float before the height of summer, did not say how big the offering would be, but three sources close to the deal said the goal was at least $500m.
The company is due to begin roadshows for the share sale on 29 June, the sources said, setting a final price on 15 July.