RusAgro To IPO This Year In Russia
RusAgro, one of the largest Russian agricultural holding companies, is preparing for IPO in May, 2010. Reuters originally reported that the IPO would be held in London, but Forbes is now reporting that the IPO will be in Russia.
The company will seek to raise from $250-$300 million.
It was valued at roughly $1 billion by the underwriting banks, Alfa Bank, Renaissance Capital and Credit Suisse, according to Reuters.
From the Reuters article:
So far, 60 percent of the company’s earnings before interest, taxation and amortisation (EBITDA) comes from the sugar division. Rusagro has earlier said it anticipates that sales in 2009 will reach 25 billion roubles ($838.9 million). The market valuation for the company depends on the global price for sugar, which has dropped 17 percent to $592 per tonne this year. Should the decline in sugar prices continue, Rusagro may postpone the IPO, the source close to the company said.
RusAgro is owned by Vadim Moshkovich. There seems to be a lot of speculation and anonymous sources involved in this story so far, but it will be interesting to see if this IPO does indeed go through on the domestic exchange this year and what impact that has on liquidity and the environment for future private equity exits in Russia.
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