UPDATE: Source: TMK raises SPO price guidance to 74.5–75 rbl/shr

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MOSCOW, Feb 2 (PRIME) -- Russia’s oil and gas pipe producer TMK has raised the price guidance for a secondary public offering (SPO) to 74.5–75.0 rubles per share from a pre-market price of 74.5 rubles, a banking source told PRIME on Thursday.

The bid book for the SPO was oversubscribed under the new price guidance, the source said.

The bid book will close at 7.00 p.m. Moscow time on Thursday.

On Tuesday, TMK said it launched an SPO to offer up to 139,000 million common shares corresponding to 13.44% of the company’s capital.

The company’s subsidiary Rockarrow Investments Limited will sell the shares, and TMK will spend the collected money to buy back its shares from VTB Bank under an option according to an agreement with the bank. The buyback volume will not exceed funds raised in the SPO.

Credit Suisse, Morgan Stanley, VTB Capital and Aton act as organizers of the placement.

(60.3099 rubles – U.S. $1)

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