Russian Helicopters, which designs and manufactures civil and military helicopters, plan to place Global Depositary Receipts representing existing shares in both London and Russia to raise $500 million in an initial public offering, the firm said on Tuesday.
"The offering is expected to consist of the sale of existing shares (including in the form of GDRs) primarily by the company's major shareholder, Oboronprom, as well as up to $250 million of primary shares in the form of GDRs," said Russian Helicopters, part of Oboronprom group. "The total value of the deal is expected to exceed $500 million."
The firm said that one GDR will represent one ordinary share of the firm. The company will be traded under the HELI ticker.
Russian Helicopters has also applied for its shares to be listed on Russia's RTS and MICEX stock exchanges.
"The company currently plans to use the net proceeds from the offering to pay off existing debt and to fund certain mandatory tender offers for shares in its subsidiaries which it does not already own."
Bank of America Merrill Lynch, BNP Paribas and VTB Capital have been appointed as joint global coordinators and bookrunners.
Other Russian companies such as Nomos-bank, which ranks among the country's top 30 banks, RusAgro Group, one of the nation's top agro industrial holdings, Etalon Group Limited, one of Russia's largest real estate developers, have recently launched their IPO programs on foreign exchanges.
MOSCOW, April 12 (RIA Novosti)
