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LSR Group raised a total of $398 million from the secondary share offering. E. Kuzmina

LSR Group fell to the weakest level in a month Friday after selling shares at the bottom of a price range that was lowered earlier in the week.

LSR, a London-listed Russian property developer, priced global depositary receipts at $8.50 each and ordinary shares at $42.50 apiece, the company said Friday. The offering amounted to 9.37 million shares and raised a total $398 million, LSR said. Five GDRs represent 1 ordinary share. LSR lowered its guidance from the original $10 to $11 per global depository receipt.

The developer’s depository receipts declined 1.7 percent to $8.55 in London, the lowest level since March 25.

LSR plans to offer 16 million new shares, or 14.6 percent of its enlarged share capital, through an open subscription at a price of $45.92 apiece, the company said in a statement. Shareholders registered as of March 5 have the pre-emptive right to buy shares at $41.33 apiece, it said.

LSR expects to raise $385 million in net proceeds from the sale, according to the company. LSR’s main shareholder, billionaire Andrei Molchanov, pledged to buy 9.37 million shares, according to the statement.

Russian companies have rushed to the global capital markets to replenish their coffers after the country's first recession in a decade.

But woes over euro-zone finances and the legal probe into Goldman Sachs have fueled global risk aversion in recent weeks, prompting investors to demand higher premiums and forcing companies to cut their prices.

(Bloomberg, Reuters)

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