31.05 PIK Group Raises $275 Mln in Share Offering
MOSCOW, May 31 (RIA Novosti) PIK Group, one of Russias largest real estate developers, has raised about $275 million in its secondary public offering, the company said on Friday.
The company released 139 million new ordinary shares, representing an increase from the previously announced minimum offering size of $150 million which is as a result of strong investor demand, the company said.
The offering involved Suleiman Kerimovs Nafta Moskva holding (which controlled 38.3 percent of PIK Group prior to the offering) and a number of other investors, PIK group said.
The company set the placement price for the SPO at 62.50 rubles on May 28.
PIK Group, which is listed in both London and Moscow, said previously that at least 50 percent of the proceeds from the share sale will go towards deleveraging. PIK Group's debt burden stood at 37.1 billion rubles ($1.2 billion) at the end of last year.
While the minimum value of the share issue was $150 million, media reports earlier this year suggested PIK Group was actually hoping to raise between $300 million and $500 million.
The company reserves the right to increase the size of the offering to accommodate excess demand, it said on Wednesday when it announced the SPO.
PIK Group, which held a $1.93 billion Initial Public Offering in London in 2007, focuses on the development of residential real estate, mortgage financing, construction and the production of construction materials.
VTB Capital and Sberbank CIB acted as Joint Global Coordinators and Joint Bookrunners for the offering.
