Russia’s Aeroflot sets SPO placement price at 60 rbl per share

MOSCOW, Oct 9 (PRIME) -- Russian national flagship carrier Aeroflot has set the placement price of its secondary public offering (SPO) at 60 rubles per share, the company said in a statement on Friday.

“To define the placement price of new ordinary shares, including the placement price of additional shares to the entities included in the list of entities with a preemptive right to buy the new shares in the amount of 60 rubles per each additionally offered ordinary share of the company,” the statement read.

On Thursday, the price of Aeroflot’s shares on the Moscow Exchange contracted by 5.8% to 62.02 rubles.

Aeroflot announced the SPO on September 21, and planned to raise at least 80 billion rubles through the floatation of up to 1.7 billion new shares. The company started public bookbuilding on October 2, offering shares worth about 39 billion rubles to institutional investors, and planned to end the bookbuilding on Thursday.

The government will also buy Aeroflot’s additional shares that are necessary to maintain its 51.17% stake in the company. According to Aeroflot, its current shareholders used their preemptive rights to bid for 987 million additional shares, including the government that bid for 869.9 million shares.

VTB Capital acts as the organizer of the SPO. The company plans to use the money on general corporate goals and to reduce its debt burden.

(77.9157 rubles – U.S. $1) 

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