Rusagro Group, one of Russia's largest agro industrial holdings, will float 16.7% of its shares in an initial public offering in London in April to raise $300 million, Kommersant business daily quoted investment sources as saying on Friday.
The company will offer Global Depositary Receipts of an additional issue and a stake of Rusagro's core shareholder, Shiny Property Limited, the paper said, adding that the volume would be set later.
Renaissance Capital, Credit Suisse and Alfa Capital Markets are the lead managers in the offering.
The road-show will start next week and pricing is scheduled for April 8, an investment source told Kommersant.
Renaissance values Rusagro at $1.8-2.2 billion, which translates into 7.8 EV/EBITDA, expected at $329 million in 2011.
"Agrarian companies are trading at 6 EV/EBITDA," Uralsib analyst Tigran Ovasenyan told Kommersant. "I believe they should reduce valuation by 30% for a successful placement."
Rusagro initially planned to raise $245.5-309.2 million in a local offering last May but failed as investors asked for a discount.
IFC Metropol Senior Analyst Tatyana Bobrovskaya said now was a good time for the offering.
"Sugar prices have soared 70% since the middle of last year and appetite for agribusiness companies has risen," Bobrovskaya said.
Funds raised in the offering are to be used to increase capacity, and implement merger and acquisition deals and land purchases.
MOSCOW, March 18 (RIA Novosti)
