Protek, raising $400 million in Russia’s biggest initial public offering since 2007, received more than $1 billion in investor orders after pricing the shares near the bottom of its target range, three people familiar with the deal said.
The company set the price at $3.50 per share after initial guidance of $3.10 to $4.50, Protek said in an e-mailed statement. The shares began trading Tuesday on the MICEX Index and RTS Index. Protek, a pharmaceuticals distributor, is the largest IPO in Russia since property developer LSR Group raised $772 million in 2007.
“The current Russian IPOs show investors are demanding a discount,” said Chris Weafer, chief strategist at UralSib. “There is interest in Russia, but only if the price is right. Investors will no longer pay a premium for Russia exposure.”
Companies are returning to Russia’s main stock exchange after a rally in commodity prices helped lift the benchmark MICEX Index as much as 9.4 percent this year, beating other so-called BRIC markets in Brazil, India and China.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.