Source: Aeroflot’s SPO price expected at 60 rbl per share

MOSCOW, Oct 8 (PRIME) -- The placement price of Russian national flagship carrier Aeroflot share in its secondary public offering (SPO) is expected at 60 rubles per share, a financial source told PRIME on Thursday

Aeroflot announced the SPO on September 21, and planned to raise at least 80 billion rubles through 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. A financial source told PRIME then that the company would collect bids until Thursday.

Aeroflot said in a statement that the placement would start on Friday and would continue until October 23.

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.

(78.0921 rubles – U.S. $1) 

End %%md/jst%%