Support The Moscow Times!

IPO Values Helicopters at $2.4Bln

Russian Helicopters was valued at as much as $2.38 billion before an initial public offering in London as the company seeks funds to pay off debt and buy shares in its units.

The division of state-owned defense industry holding company Oboronprom is seeking $19 to $25 per Global Depositary Receipt, valuing it at $1.81 billion to $2.38 billion, according to a statement Tuesday. Russian Helicopters aims to raise at least $500 million in the sale, including for "mandatory tender offers" for shares in its subsidiaries.

The share offering consists of new shares worth $250 million as well as Oboronprom's existing stock. The shares will be listed on the MICEX and RTS exchanges, while the GDRs will trade on the London Stock Exchange.

The value of Spectrum's initial investment in Moscow-listed Kazan and Ulan-Ude has surged 200 percent over the past two years, said Michael Kart, a managing director at Moscow-based investment company Spectrum Partners, which has invested in the company's Kazan Helicopters and Ulan-Ude units.

Bank of America Merrill Lynch, BNP Paribas and VTB Capital have been hired to organize the sale.

The offer price for the IPO may be announced on or around May 11, according to the statement. Unconditional dealings in the GDRs are expected to commence around May 16.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more