Segezha Group, one of Russia’s largest timber holdings, may conduct an IPO already in the short-term.
As a result of IPO, the main owner of Segezha Group, the Russian financial conglomerate AFK Sistema, plans to raise up to US$500 million, that will be used for the further development of the company, particularly some of large-scale projects, which are implemented by Segezha.
It is reported, the final parameters of IPO have not yet been approved.
Representatives of Segezha Group were not available for comments.
Preparations for Segezha’s IPO began at the beginning of the year, although it was agreed that it final conduction will depend on the situation in the market. In February, the owners approved a doubling of the authorized capital of Segezha Group through a public offering of 11.94 billion shares. At present 98.3% of Segezha Group is owned by AFK Sistema, 1.45% belongs to the company’s CEO Mikhail Shamolin.
In March, Ernst & Young – Valuation and Consulting Services estimated the overall value of Segezha Group shares at 10.38 rubles per share. This equals to 124 billion rubles for the entire company.