25.04.2007, 14:44
MMK Raised $ 1 billion during its IPO, but Hoped for more
OREANDA-NEWS. April 25, 2007. Magnitogorsk Iron and Steel Works raised $ 1 billion at public offering of its shares at London Stock Exchange (LSE), the company bulletin says. This is below the level expected before the offering: global depositary receipts were offered at the lower range limit, $12.5 for each. During the offering the shares of the owner Viktor Rashnikov were sold, so he received 6-8% less compared to the RTS quotations.
As the MMK bulletin says, 80 million global depositary receipts (GDRs) at $ 12.5 each for 1.04 billion shares were offered to investors. Based on the price of offering, the market capitalization of MMK is $ 11.221 billion. The ratings of MMK at Russian stock exchanges are 6% higher, and the statement made at MMK before the IPO said that the expectations were to raise up to $ 1.3 billion.
As the bulletin says, the shares were offered between institutional investors mainly in the UK and European continent. The selling shareholder for IPO was Mintha Holding Limited company, to which Viktor Rashnikov, owner and chairman of the board of directors at Magnitogorsk Iron and Steel Works, is a beneficiary.
Faccording to Rashnikov, whose words are cited in the bulletin, “Offering of shares of Magnitogorsk Iron and Steel Works opens a new stage in the company history. MMK has a good standing at the national and international markets, and our intention is to continue the development of our enterprise”.
Last summer MMK already tried to sell 2% of shares at RTS and MICEX. But Rashnikov did not like the price offered for the shares, and he canceled the transaction last minute, as Vedomosti remind.
As the MMK bulletin says, 80 million global depositary receipts (GDRs) at $ 12.5 each for 1.04 billion shares were offered to investors. Based on the price of offering, the market capitalization of MMK is $ 11.221 billion. The ratings of MMK at Russian stock exchanges are 6% higher, and the statement made at MMK before the IPO said that the expectations were to raise up to $ 1.3 billion.
As the bulletin says, the shares were offered between institutional investors mainly in the UK and European continent. The selling shareholder for IPO was Mintha Holding Limited company, to which Viktor Rashnikov, owner and chairman of the board of directors at Magnitogorsk Iron and Steel Works, is a beneficiary.
Faccording to Rashnikov, whose words are cited in the bulletin, “Offering of shares of Magnitogorsk Iron and Steel Works opens a new stage in the company history. MMK has a good standing at the national and international markets, and our intention is to continue the development of our enterprise”.
Last summer MMK already tried to sell 2% of shares at RTS and MICEX. But Rashnikov did not like the price offered for the shares, and he canceled the transaction last minute, as Vedomosti remind.
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