Russian port owner prices discount float
RUSSIAN firm Global Ports has priced its London initial public offering (IPO) at a deep discount, as it looks to raise up to $572m (£355m).
The container terminal operator, a unit of Russian freight group N-Trans, set a price range of between $14.70 and $16.10 per global depository receipt (GDR).
The list price puts shares in the company at a 28 per cent discount to the mid-point of a recent valuation made by analysts, in the latest indication of the lengths firms are prepared to go to in order to successfully list.
London’s faltering IPO market has dashed the listing plans of several Russian companies in recent months, including Kremlin-backed aerospace firm Russian Helicopters.
The high hit-rate of failed floats has been blamed on a mismatch between management expectations and the appetite of investors.
Investors are however said to be keen on Global Ports, given the track record of its owners.
N-Trans has successfully listed in London before, having floated its rail freight unit Globaltrans in 2008. Globaltrans currently trades at about 40 per cent above its listing price.
“The company in an interesting sector, with plenty of spare capacity and scope to grow,” a fund manager with knowledge of the float told City A.M..
N-Trans will sell existing shares, 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.
Global Ports chairman Nikita Mishin said: “By listing in London our aim is to provide investors with access to a fast-growing industry in one of the world’s most attractive emerging economies.”
MEET THE ADVISERS: DEUTSCHE BANK
MARINA KRASCHENKO
DEUTSCHE BANK
MARINA Kraschenko is advising N-Trans on its plans to list Global Ports for German lender Deutsche Bank.
The bank is acting as joint bookrunner and global coordinator alongside Morgan Stanley, Goldman Sachs and Russian bank Troika Dialog.
As head of Russian equity capital markets, Kraschenko recently orchestrated the London float of Russian private bank Nomos, one of a limited number of successful Russian IPOs so far this year.
She was joined on the Global Ports deal by shipping finance expert Iain Macleod, managing director in UK investment banking.
Macleod recently advised ports giant DP World on its London listing. He also advised the Dubai-based company on its £6.8bn (£4.2bn) acquisition of British shipping firm P&O in 2006.
Andrew Chulack, co-head of investment banking coverage and advisory for Russia, also worked on the deal.