During an initial public offering (IPO), Sitronics intends to place 1.675 billion common shares in two tranches, representing 17.5% of its equity capital, the company said in a news release.
The company will offer common shares and GDRs in its first tranche, and only shares in its second tranche.
Sitronics intends to float GDRs on the London Stock Exchange and ordinary shares on the Russian Trading System (RTS) stock exchange and the Moscow Inter-Bank Currency Exchange (MICEX), the news release said.
It intends to spend about 50% of its IPO proceeds on acquisitions, in particular on increasing stakes in subsidiary companies, 25% on debt repayment and the remaining 25% on general corporate goals, including new projects and working capital, the news release said.
Sitronics was established in May 1997. Its companies deal with telecommunications equipment, software production, and the introduction of security systems. AFK Sistema is Russia's leading telecoms and services holding company.
