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ALROSA Reports RUB 41bn IPO

28.10.2013 09:09 / Interfax

Alrosa (MOEX: ALRS) has announced official IPO results. The company floated 16% of its stock on Moscow Exchange.

The price was RUB 35 per share, according to ALROSA press release, bottom of the range set prior to the roadshow (RUB 35-38).

The IPO was arranged by VTB Capital, Renaissance Capital, Goldman Sachs, JP Morgan, and Morgan Stanley.

14% of ALROSA, owned 50/50 by Russia and Yakutia, were placed. The market was also offered 2% quasi-treasury shares owned by Cyprus-based Wargan Holdings. The share of Russia is down from 50,92% to 43,9%, Yakutia - from 32% to 25% plus one share. The ALROSA free float is up from today’s 9% (2% owned by Wargan) to 23%.

The sale of the state-owned stake at RUB 35 per share was approved by Prime Minister Dmitry Medvedev on 25 October.

Calculated at the bottom of the IPO price range, 100% of ALROSA is worth RUB 258bn. The IPO raised RUB 41,3bn (1 billion 181 million 332 thousand 741 shares sold).

Sources say the books were oversubscribed for some USD 400mn (roughly a third of the volume). Investors include major US funds, the Russian Private Equity Fund and Blagosostoyanie Non-state Pension Fund.

To keep the share price stable, VTB Capital is authorized to sell up to 10% of the IPO within 30 days of the price announcement as a stabilization agent. Sunland Holding SA, an ALROSA subsidiary, has given VTB Capital the greenshoe option.

“We intend to develop ALROSA as a public company and build its value for all shareholders”, said the Head of the diamond-mining monopoly Fedor Andreev as quoted in the release.

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