OREANDA-NEWS. May 10, 2012. If successful, the people’s IPO launched by OJSC Minsk Sparkling Wines Plant will lead the government to use that approach to sell state-owned stakes in other enterprises, Belarus’ Vice Premier Sergei Rumas told reporters.

Sergei Rumas made comments about the importance of arranging the people’s IPO by OJSC Minsk Sparkling Wines Plant on May 2. It is a pilot project initiated by the Belarusian government. If it is successful and the shares are sold within the next six weeks, an analysis will be performed after the IPO. “It is highly probable that if the project is successful, the government will contact the president with the proposal to extend the practice onto some other enterprises,” the vice premier said. The initial public offering of several joint-stock companies will be the second stage of the project. But only if the placement of shares is a success, Rumas said.

As previously reported, OJSC Minsk Sparkling Wines Plant is holding people’s IPO May 3 – June 15, with a 33% state-owned stake put up for sale (the company is fully owned by the state).

The IPO will allow individuals to take part, with a limit of 1,000 shares per investor. The company is set to sell 240,000 shares priced at Br171,450 each (USD 21.4). Belarusbank and Belgaprombank have been chosen to act as investment brokers. The funds raised as a result of the IPO will go to pay off loans borrowed by Minsk Sparkling Wines Plant to finance reconstruction activities.

On the first day of trading, there were 103 deals made to sell 4,183 shares of OJSC Minsk Sparkling Wines Plant. The total value of transactions stands at 717,175,350 rubles (USD 89,090).

Minsk Sparkling Wines Plant was established in 1978; it makes 80 varieties of beverages; annual output is estimated at 12 million bottles.