UPDATE: Source says Russia’s ALROSA bid book well oversubscribed

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MOSCOW, Jul 8 (PRIME) -- A bid book for a secondary public offering (SPO) of Russia’s uncut diamond mining giant ALROSA has been “well oversubscribed” with both foreign and domestic investors interested in the shares, a source close to the deal told PRIME on Friday.

“We call it well oversubscribe, compare to just oversubscribe, I mean the bid 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 the geography of investors.”

He said that the timing of the bid book closing is unknown so far.

The government opened the SPO bid book for a 10.9% stake in ALROSA on Wednesday and is expected to close it on Friday. Economic Development Minister Alexei Ulyukayev said then the funds raised in the sale of the stake will be used in state budget 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.

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