Russian homebuilder PIK falls 12% after secondary share sale

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MOSCOW, Oct 1 (Businesshala) – Shares of Russian homebuilder PIK fell about 12% on Friday after the company’s subsidiary sold PIK shares via a secondary public offering (SPO), which analysts said was fueled by strong demand. attracted to.

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The sale price of about 4.1% of PIK’s share capital was 1,275 rubles ($17.50) per share. Shares of PIK were at about 1,265 rubles as of 0836 GMT. The shares hit a record high of 1,509.6 rubles on September 21.

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PIK said on Friday that the offering’s net proceeds would be about 35.9 billion rubles ($493 million), slightly below the original $500 million SPO target.

PIK said on Wednesday that its LCC PIK INVESTPROEKT subsidiary would offer approximately 27 million shares of PIK, approximately 4.1% of the share capital, and use the proceeds to buy part of VTB Bank’s stake in the company.

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PIK CEO Sergei Gordeev holds a 59.3% stake in the company, while VTB holds 23% and the remaining 17.6% free float, PIK’s website shows.

Russia is in the midst of a flurry of listing activity. IT company Softline on Thursday announced plans for an initial public offering (IPO) in London, following in the footsteps of Renaissance Insurance, which on Monday said it planned a market debut in Moscow.

Three financial market sources told Businesshala on Thursday that Mercury Retail Group is aiming to raise more than $1 billion in a Moscow IPO by the end of the year.

Along with PIK this week, agricultural conglomerate Rusagro also successfully closed an SPO. Boris Kvasov, head of equity capital markets at VTB Capital, said the two deals are the biggest among his industries in Russia in more than a decade.

“Both were closed with a discount of less than 9% on their trading value prior to the deal launch, both attracted a large amount of high-quality demand and the order book was oversubscribed several times, which (them) ) allowed to increase the initial offer. Quantity, ”said Kvasov.

“Given the PIK placement, it is worth noting the high activity from US investors, which accounted for about 25% of the total demand.” ($1 = 72.8650 rubles) (Reporting by Tatiana Voronova and Olga Popova; Writing by Alexander Marrow. Editing by Jane Merriman)

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