UPDATE 3: Source: Russia’s ALROSA bidding book closed, oversubscribed

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MOSCOW, Jul 8 (PRIME) -- A bidding book for a secondary public offering (SPO) of 10.9% in Russia’s uncut diamond mining giant ALROSA is closed, a source close to the deal told PRIME on Friday.

“The placement price will be announced on Monday morning,” the source said.

Another source said that bids with a price of below 65 rubles per share may not be satisfied. “This is a guideline for investors from the organizers,” the person said.

The bidding book has been “well oversubscribed” with both by foreign and domestic investors, a source with knowledge of the matter said earlier.

“We call it well oversubscribed, compared to just oversubscribed, I mean the bidding book is really overfilled,” the source said. “A really good demand from Russia and from abroad, it is diversified; the organizers are satisfied with both the quality and geography of investors.”

The government opened the SPO bidding book on Wednesday. Economic Development Minister Alexei Ulyukayev said then the funds raised in the sale of the stake will be for state spending.

Ulyukayev also said the government will not make any decisions on additional sales of shares in ALROSA within 180 days after the price announcement for the 10.9% interest.

The Federal State Property Management Agency holds 43.93% in ALROSA, the government of the republic of Yakutia holds 25% plus one share, 8% is distributed among eight Yakutia’s regions, and 23.07% is in free-float.

(64.0500 rubles – U.S. $1)

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