ChelPipe, Russia’s third-largest maker of steel pipes for the oil and gas industry, has the order book for its London share offering covered at the bottom end of the price range, said two people with knowledge of the sale.
The initial public offering is fully subscribed, the people said, declining to be identified because the matter is confidential.
ChelPipe said Jan. 26 it’s offering depositary receipts, each equal to one share, at $3.50 to $4.60 apiece. By selling at the low end of the scale, the Chelyabinsk-based company may raise $473 million, while existing shareholders could raise $157 million, it said.
Russian companies, seeking to fund growth and repay debt, have struggled to sell shares in London this year after investor interest waned. OAO Koks, the largest pig-iron exporter, delayed its planned IPO on Feb. 4, while HMS Group Plc, Russia’s biggest industrial-pipe producer, cut the price of its sale yesterday.
JPMorgan Chase & Co., the manager of ChelPipe’s IPO, has an over-allotment option for $51 million to be exercised within a month, the people said.
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