TransContainer IPO Raises $400 Million, Near Low End
OAO TransContainer’s initial public offering raised about $400 million in Moscow and London, with shares sold at the low end of the price range.
TransContainer shareholders, including state-controlled OAO Russian Railways, sold stock in the IPO at $8 a global depository receipt, or $80 a share, the company said today in a statement on Regulatory News Services. The GDRs had been offered for $7.90 to $9.90 each.
The stock dropped as much as 30 cents, or 3.8 percent, to $7.70, and traded at $7.80 as of 11:30 a.m. in London as conditional trading began today. The shares will start trading in Moscow on Nov. 12.
“The company is quite expensive,” Michael Kart, a managing partner at Moscow-based investor Marshall Spectrum Ltd., said by phone. “TransContainer has a limited track record and suffered badly from the economic slump in 2008.”
Marshall Spectrum didn’t buy TransContainer stock, he said.
The offering is part of Russian Railway’s plan to raise more than 150 billion rubles ($4.9 billion) selling units by 2012, which will be used to finance investments, the monopoly’s Senior Vice President Valery Reshetnikov said on Oct. 19. The rail monopoly plans to raise 20 billion rubles this year selling stakes in OAO TransCreditBank, TransContainer and OAO Elteza, Reshetnikov said.
“We view this as a strong gesture of their support for the ongoing reform of the Russian railway transportation sector,” Russian Railways Chief Executive Officer Vladimir Yakunin said in the statement.
The IPO will give TransContainer an enterprise value, or the sum of its stock and debt minus cash, of $1.3 billion, the Moscow-based company said in the statement. It had net debt of 6.46 billion rubles ($210 million) as of June 30.
JPMorgan Chase & Co., Morgan Stanley and Troika Dialog managed the stock sale. TKB Capital, the investment bank set up by TransCreditBank, is also a junior manager of the IPO, according to the statement.
To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net Zijing Wu in London at zwu17@bloomberg.net
To contact the editor responsible for this story: To contact the editor responsible for this Amanda Jordan at ajordan11@bloomberg.net; Daniel Hauck at dhauck1@bloomberg.net
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