MOSCOW, Dec 21 (PRIME) -- MGKL, parent holding company of pawnshop chain Mosgorlombard, plans to open a new bidding book during an initial public offering (IPO) on the Moscow Exchange until December 27 with a reduced placement price range of 2.50–2.55 rubles per share, the company said in a statement on Thursday.
“MGKL has decided to stop preliminary bidding for the company’s shares. However, MGKL announces a new preliminary collection of bids to satisfy a wide range of Russian investors from December 21, 2023 through December 27, 2023,” the company said.
The previous placement price guidance was set at 3.10–3.15 rubles per share. During the IPO, the company planned to offer up to 322.58 million of new shares to create a free float of 29%.
Trading in the company’s shares on the Moscow Exchange should now start on December 28.
MGKL CEO Alexei Lazutin said that the amount of bids collected for the company’s shares did not allow the company to achieve its investment goals.
“The core shareholders believe in the company and our growth strategy, this is why we made a calculated decision to change the placement parameters and set a new price range below the previous threshold so that the highest possible amount of investors partake in the MGKL IPO and to increase the company’s growth potential. Thus, we want to offer a premium to the potential members of our placement through a discount,” he said, as quoted by the company.
(90.4056 rubles – U.S. $1)
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