OREANDA-NEWS. April 29, 2010. Protek, raising USD400 million in Russia’s biggest initial public offering since 2007, received more than USD 1 billion in investor orders after pricing the shares near the bottom of its target range, three people familiar with the deal said.

The company set the price at USD 3.50 per share after initial guidance of USD 3.10 to USD 4.50, Protek said in an e-mailed statement. The shares began trading Tuesday on the MICEX Index and RTS Index. Protek, a pharmaceuticals distributor, is the largest IPO in Russia since property developer LSR Group raised USD 772 million in 2007.

“The current Russian IPOs show investors are demanding a discount,” said Chris Weafer, chief strategist at UralSib. “There is interest in Russia, but only if the price is right. Investors will no longer pay a premium for Russia exposure.”

Companies are returning to Russia’s main stock exchange after a rally in commodity prices helped lift the benchmark MICEX Index as much as 9.4 percent this year, beating other so-called BRIC markets in Brazil, India and China.