Segezha is one of the biggest producers of sack kraft paper and paper sacks world wide. The IPO is expected to value the group north of $1bn.
Russia's vertically integrated forest products company Segezha Group, a subsidiary of Sistema Corporation, readies its stock market launch plans. The company announced it will list on the Moscow Stock Exchange in order to raise money for further growth investments and optimise debt structure.
The offering will consist of a primary offering of newly issued shares which is expected to raise at least RBL30bn, and an over-allotment option of secondary shares in order to cover excess demand of up to 15 per cent of the new shares. Secondary shares will be provided by Segezha's majority shareholder Sistema and/or one of its subsidiaries, Segezha announced. The structure of the offering, however, will allow Sistema to remain the majority shareholder of the company.
JP Morgan, UBS, and VTB Capital are joint global co-ordinators and joint bookrunners on the IPO. Alfa Capital Markets, Gazprombank subsidiary Bank KPB International, BOFA Securities, and Renaissance Capital are also serving as joint bookrunners.
Segezha did not provide provide details on the pricing process or the exact IPO date. According to Reuters, a roadshow is scheduled to begin on April 19, with pricing on April 26.
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