As previously reported on Fusion digiNet, Mail.ru Group is seeking an initial public offering on the London Stock Exchange. They have now announced the indicative price range for the offering of ordinary shares.
The indicative price range for the Offering has been set at US$23.70 to US$27.70 per GDR. The indicative price range implies an equity value for the Company of $4.78 billion to $5.63 billion prior to new share issue and $4.86 billion to $5.71 billion post new share issue.
The Offering comprises a primary offering of 3.03 million ordinary shares by the Company in the form of GDRs and a sale of 28.59 million ordinary shares by existing shareholders in the form of GDRs. This will represent a free float, post new share issue, of approximately 16%. The final number of shares being sold in the Offering will be confirmed prior to admission.
The net proceeds to the Company from the primary portion of the Offering will be used to fund, in part, the agreed acquisition of an additional 7.5% equity stake in vKontakte for $112.5 million. After the closing of the Transaction, the Company will own 32.49% of vKontakte. The Company is also purchasing an option to acquire an additional 7.5% equity stake in vKontakte over the next year, which if exercised would bring its stake to 39.99%.
The Company has appointed Goldman Sachs International and J.P. Morgan as Joint Global Co-ordinators and, together with Morgan Stanley and VTB Capital, Joint Bookrunners in connection with the Offering. Pacific Crest Securities has been appointed Co-lead Manager in connection with the Offering.
UK, London & Russia, Moscow
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