OREANDA-NEWS. October 8, 2009. Russian retailer Magnit will launch an SPO road show on October 27-28 after which the company will set a placement price by the end of the month, sources close to the placement told Reuters. In early October, FSS registered the company’s additional issue of 11.154 mn shares. Based on Magnit’s current market valuations on LSE of USD 14 per GDR (1 share = 5 GDRs), the market value of the additional share issue comes to over USD 780 mn. Magnit is looking to raise USD 350 mn and therefore could place fewer shares than registered, a source close to the retailer’s shareholders said.

“The company will place more shares in the event of strong demand”, the source added. According to another source, the company does not plan any pre-marketing and has not yet decided whether to set a bookbuilding range. “Needless to say, a premium to the market price is hardly possible. We need to think about whether there will be a discount”, he said. Another source surmised that the discount to the market price could be in the range of 5-10%.