Segezha Group to float shares in Moscow IPO to raise 30 bln rbl

MOSCOW, Apr 12 (PRIME) -- Russian pulp and paper holding Segezha Group plans to float shares in an initial public offering (IPO) on the Moscow Exchange to raise at least 30 billion rubles, the company said in a statement on Monday.

“The offering will consist of a primary offering of newly issued shares to raise at least 30 billion rubles and an over allotment option of secondary shares. Proceeds from the primary offering will be deployed to accelerate the company’s growth by financing value accretive investments and optimizing leverage,” the statement read.

The option, provided by multi-industry holding Sistema, Segezha’s largest shareholder, or by one of Sistema’s 100% subsidiaries, will comprise up to 15% of the offered shares, the company said.

It added that Sistema will remain the core owner of Segezha after the IPO.

The shares will be listed on the Moscow Exchange on or about the pricing announcement date.

J.P. Morgan, UBSZ, and VTB Capital will act as global coordinators and joint bookrunners of the IPO, while Alfa Capital Markets Ltd, Bank GPB International S.A., BofA Securities, and Renaissance Capital will act as joint bookrunners.

(77.1657 rubles – U.S. $1)

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