Russia's largest tobacco distributor, Megapolis group, plans to raise over $1 billion by floating over 25 percent of its stock in an initial public offering in London this fall, a banking source told RIA Novosti late on Wednesday.
"Megapolis has recently held non-deal meetings with investors in London. They discussed the IPO, the appetite for the company. There are plans to float in London in fall," the source said, adding that after the meetings Megapolis had increased the target from $500 millionto $1 billion.
JP Morgan, Credit Suisse, Deutsche Bank, Renaissance Capital and Troika Dialog have been appointed to lead the IPO.
