VTB Capital completed a USD526 mln transaction placing primary shares of OJSC Magnit as well as shares of existing shareholders
A total of 5,680,000 newly issued ordinary shares in the form of GDRs have been placed to various international institutional investors, with the ordinary share price being USD65 and GDR price being USD13.
In addition, existing shareholders applied to execute their pre-emptive rights for the amount of 2.427 mln shares, and if paid the Company will receive additional USD157.7 mln in proceeds.
The deals will result in an increase of a total free float of up to 47.8%. GDRs are traded on IOB London Stock Exchange and ordinary shares on RTS and MICEX.
A wide range of UK, European and US institutional investors have participated in the offering. The book was oversubscribed at the top of the range. VTB Capital acted as Joint Global Coordinator, Joint Bookrunner and Joint Lead Manager in connection with the Global Offering.
Mikhail Butrin, Co-Head of Global Banking at VTB Capital, noted: “The demand for the offering from various groups of investors was much larger than the size of the placement. This allowed us to price the offering at a premium to GDR’s Wednesday close. Company’s leading position in the Russian food retail market along with its strong operational and financial performance resulted in investors’ rushing to buy Company’s stock”.
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