Russian internet company Mail.ru announced a price range of US$23.7 to US$27.7 per GDR for its listing on the London Stock Exchange.
The price range values the company at between US$4.78bn to US$5.63bn prior to the new share issue and US$4.86bn to…
Russian internet company Mail.ru announced a price range of US$23.7 to US$27.7 per GDR for its listing on the London Stock Exchange.
The price range values the company at between US$4.78bn to US$5.63bn prior to the new share issue and US$4.86bn to US$5.71bn post new share issue.
The company will issue 3.03 million shares while existing shareholders will sell a 28.59% stake. The free float will be about 16%.
One GDR will represent an interest in one ordinary share of the company.
JPMorgan and Goldman Sachs have been appointed global coordinators and joint bookrunners, while Morgan Stanley and VTB Capital are joint bookrunners and Pacific Crest Securities is co-lead manager.
The proceeds of the primary offering will partly fund the acquisition of an additional 7.5% stake in Russian social network vKontakte for US$112.5m, which will bring Mail.ru’s stake to 32.49%. Mail.ru is also buying an option to acquire another 7.5% stake, which if exercised would bring Mail-ru’s stake to 39.99%.
Mail.ru operates Russian language online social networking sites Odnoklassniki and Moi Mir as well as instant messaging networks Agen and ICQ. In addition to vKontakte, it holds minority stakes in Facebook (2.38%), Zyngo Game Network (1.47%) and Groupon (5.13%).
The company, formerly known as Digital Sky Technologies, was founded by Russian tycoon Yuri Milner.
