Russian retail chain Lenta raises $950m to start trading in London
RUSSIAN hypermarket Lenta is set to announce a price of $10 per global depository receipt (GDR) today for its forthcoming float in London, raising $952m for its private equity owners.
The $10 price gives Lenta, which is controlled by David Bonderman’s TPG Capital, an equity value of about $4.3bn.
Bankers had previously indicated a price range of between $9.50 and $11.50 per GDR – a type of share – although this range narrowed to between $10 and $11 earlier this month due to high demand.
The pricing at the lower end of the range was said to have been influenced by turmoil in Ukraine and its impact on the Russian retail sector, which introduced concerns into the book building late on.
Credit Suisse, JP Morgan and VTB Capital acted as co-ordinators and joint bookrunners on the offering, with Deutsche Bank and UBS also running the book. The offering, which was marketed in the UK, Russia and the US, will see TPG and other shareholders sell 22.1 percent of the business.