MOSCOW (Reuters) – Russian group Global Ports said it planned to raise up to $572 million (355 million pounds) from an initial public offering in London, hoping for investor interest in the fast-growing Russia container market.
Global Ports, a unit of transport and infrastructure holding group N-Trans, set a $14.70-$16.10 price range for an IPO expected to comprise 35.5 million shares, it said on Thursday.
N-Trans will sell existing shares, while the business itself is eying proceeds of around $100 million from new shares to fund investment in Russian ports.
A source close to the deal said earlier this month Global Ports was seeking $750 million from the IPO, although that figure was based on the most optimistic analyst valuation of the company.
Russian private issuers have been queuing up to access London capital markets this year, receiving a lukewarm reception from investors reluctant to pay valuations sought by owners.
Investors have been particularly reluctant to back individual owners using IPOs as a cash-in, preferring companies using proceeds for expansion.
Russian IPOs have raised $3.4 billion in the year to date, including the $1.4 billion New York IPO of search engine Yandex, while issues hoping to raise a combined $7 billion have been shelved.
If successful, Global Ports would be the third successful IPO launched by N-Trans after freight company Globaltrans and road and bridge builder Mostotrest .
The Russian container traffic market was expected to grow over18 percent annually until at least 2013, Global Ports said, citing a forecast by independent maritime consultancy Drewry, supported by Russian economic development and growing volumes of imports and exports.
The price range implied a pre-money equity value for Global Ports — the leading container terminal operator serving Russian cargo flows — of $2.2-$2.4 billion.
Deutsche Bank, Goldman Sachs International, Morgan Stanley and Troika Dialog are joint global coordinators and joint bookrunners of the global offer.
(Reporting by Maria Kiselyova and John Bowker; Editing by Erica Billingham and Dan Lalor)