Phosagro lists in London for $538m

RUSSIAN fertiliser group Phosagro priced its London share sale yesterday, raising $538m (£337m) to pursue acquisitions.

The offer valued the firm at $5.2bn, significantly lower than early analyst estimates of up to $8.7bn.

It priced its initial public offering (IPO) in the lower half of its initial range at $14 per global depository receipt, or $420 per share. Sources close to the deal said the IPO was several times oversubscribed.

Dmitri Sredin, chief executive of Renaissance Advisors acting for Renaissance Capital on the deal, told City A.M.: “The purpose of transaction was not to cash up, it was to create a currency for the company to participate in M&A transactions. There are a lot of consolidation processes going on and they want to participate.”