Russia’s Chelpipe prepares for share offering in Moscow – sources

1 BUSINESS

Business News - Opportunities - Reviews

 

 

MOSCOW/LONDON, Feb 17 (Reuters) – Chelpipe, one of the largest producers of steel pipes in Russia, is preparing a share offering in Moscow, four sources familiar with the matter told Reuters on Monday.

The company has already hired banks to organise the potential deal, the sources said.

JPMorgan, Citi, VTB, Sberbank and Gazprombank are expected to work on the deal, two of the sources said.

Chelpipe, JPMorgan and VTB declined to comment. Citi, Sberbank and Gazprombank have not replied to Reuters’ request for comment.

Chelpipe tried to list its shares in Londhere and Moscow here twice in 2011, but postponed the deals when it did not get the price it wanted.

This month, it approved a new dividend policy and a new 2024 strategy, adding it was “exploring various options for entering equity markets, including a potential equity offering on Moscow Exchange.”

Chelpipe, with a free float of 2.8%, is controlled by Russian businessman Andrei Komarov, who holds a stake of 77.3% and his partners.

Many Russian companies have a fraction of their share capital listed on the stock exchange, often referred as a “technical listing” by bankers. Such companies are not considered fully-fledged members of the stock exchange until they complete a more substantial offering of shares.

Chelpipe’s board of directors approved an issue of 76,424,084 of additional shares, equal to 25% of the current share capital or 20% of the enlarged one, in December.

The company competes with other Russian pipe makers, including TMK, and supplies a quarter of Russian market of large-diameter pipes and 19% of pipes for the oil and gas industry known as OCTG.

Its net debt was 73.7 billion roubles ($1.2 billion) at the end of June, with a net debt to core earnings (EBITDA) ratio of 2.7.

$1 = 63.4629 roubles
Reporting by Anastasia Lyrchikova, Olga Popova in Moscow and
by Abhinav Ramnarayan in London; writing by Polina Devitt;
editing by Mark Potter

1 BUSINESS

Business News - Opportunities - Reviews

 

 

Leave a Reply