Phosagro raises $538 million in London IPO

Phosagro raises $538 million in London IPO

2:38 PM, 15th July 2011
Phosagro raises $538 million in London IPO

 

LONDON, UNITED KINGDOM: Phosagro become the seventh Russian company to float on overseas markets this year as private business owners seek to tap capital markets that have rebounded following the financial crisis.

The offer valued Phosagro, whose Chairman and 10 per cent shareholder, Vladmir Litvinenko supervised Russian Prime Minister Vladimir Putin’s PhD thesis, at $5.2 billion against an early analyst estimate of $6.04 billion to $8.77 billion.

“They definitely were not greedy,” said one investor who took part in the IPO. He added he believed the order book was nearly two times subscribed.

Uralsib, Analyst Vadim Kotikov said Phosagro was valued with a discount to Minnesota, US-based rival Mosaic, with the enterprise value to earnings before interest, taxation, depreciation and amortisation at around 6.

“If we assume that Mosaic multiples are fair, Phosagro has at least 10 per cent upside potential, in reality around 20,” said Kotikov.

“I think that the price met market expectations. The shares have good potential, taking into account the good state of the fertiliser market,” Otkritie, Bank Analyst, Denis Gabrielik said.

Fertiliser has been a hot sector in 2011 due to growing demand for food supplies and biofuels.

Phosagro priced its IPO at $14 per global depositary receipt, or $420 per share, compared with a GDR price range indicated at $14 to $14.50. The original range was $13 to $16.50.

Proceeds from the IPO could increase to $594 million if an overallotment option is exercised in full, taking the size of the stake sold to 11.4 per cent.

© Reuters

 

0 Comments

Login

Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News


New way to store sun’s heat

CAMBRIDGE, US: A novel application of carbon nanotubes, developed by MIT researchers, shows promise as an innovative approach to storing solar ener ...

Read more
Home Depot sued by California counties over VOC levels

DIAMOND BAR, US: The South Coast Air Quality Management District (AQMD), the air pollution control agency for Orange County and much of Los Angeles, S ...

Read more
New material could offer hope to those with no voice

CAMBRIDGE, US: In 1997, the actress and singer Julie Andrews lost her singing voice following surgery to remove noncancerous lesions from her vocal co ...

Read more
Nanocrystal transformers

BERKELEY, US: A scientific study about structural transformations within single nanocrystals is breaking new ground for the design of novel materials ...

Read more
Pigments market to reach $45 billion by 2018

KONSTANZ, GERMANY: Ceresana Research forecasts that the global pigment market will earn revenues of more than $45 billion in 2018. In 2010, the Asia P ...

Read more
Keyuan cleared of any inappropriate accounting by independent auditors

NINGBO, CHINA: Keyuan Petrochemicals has made no inappropriate accounting of its customer transactions nor has it intended to misstate revenues, accor ...

Read more
www.worldofchemicals.com uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X