At least 11.1 million existing shares in the form of shares and global depositary receipts are being offered by a group of investors including Adorabella Ltd., Chlodwig Enterprises Ltd. and Miles Ahead Management Ltd., the Moscow-based company said in a regulatory filing yesterday.
The offering will be followed by a capital increase through open subscription of as many as 13.5 million ordinary shares with a nominal price of 2.50 rubles per share, it said. The selling shareholders plan to reinvest about 45 percent of the proceeds in the capital increase, PhosAgro said.
“Our shareholders and board of directors have identified an increase of liquidity of our shares and GDRs as one of the important priorities,” Chief Executive Officer Maxim Volkov said in the statement. “We expect an approximately twofold increase in PhosAgro’s free float will have a positive impact on the liquidity of our shares and GDRs and will support the inclusion of PhosAgro shares in the MSCI Russia index.”
PhosAgro has gained 11 percent this year in Moscow trading, with daily average trading of 8,133 shares. The company said in the statement it expects to report 2012 revenue of 105.3 billion rubles ($3.37 billion) and net income of 24.5 billion rubles when it reports earnings on April 24.
Bank of America Corp.’s Merrill Lynch, Citigroup Inc., Credit Suisse Group AG (CSGN), Raiffeisen Bank International AG (RBI), Renaissance Capital Holdings Ltd., Sberbank CIB and VTB Capital have been appointed to manage the sale, PhosAgro said.
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