Shares in Global Ports close up 18pc following London IPO
SHARES in Russian port operator Global Ports soared yesterday on its debut on the London Stock Exchange, following its successful $534m (£333m) initial public offering (IPO).
The banks handling Global Ports’ IPO also exercised an over allotment option to buy shares in the company, pushing up the proceeds from the sale to $588m.
The container terminal firm, which runs five locations in Russia and Finland, closed up almost 18 per cent at $17.70 per share.
It had priced its shares in the form of global depository receipts (GDRs) at $15 per unit, giving it a market capitalisation of $2.35bn.
The listing price put shares in the company at a deep discount to a recent valuation made by analysts, indicating the lengths firms are prepared to go to in order to successfully float.
London’s faltering IPO market has dashed the listing plans of several Russian firms in recent months, including Kremlin-backed defence firm Russian Helicopters.
Of the four other IPOs by Russian companies on the London Stock Exchange so far this year, only one closed up on its first day of trading.
Despite the tough trading environment, the total value of Russian equity market deals has hit its highest level since 2007.
About $9.4bn worth of deals have been done so far this year through 16 transactions, according to data provider Dealogic.
The largest Russian deal this year was Moscow-based lender VTB’s $3.3bn follow-on share offer.