Banking

Russia's Segezha aims to announce IPO plans next week -sources

Credit: REUTERS/MAXIM SHEMETOV

Russian forestry group Segezha is set to announce plans for an initial public offering (IPO) in Moscow next week, three financial market sources told Reuters on Thursday.

MOSCOW, April 8 (Reuters) - Russian forestry group Segezha is set to announce plans for an initial public offering (IPO) in Moscow next week, three financial market sources told Reuters on Thursday.

Russian firms have lined up for equity raising this year, with a $2 billion London IPO by low-price retailer Fix Price FIXPq.L in March. The domestic market has been hit by new U.S. sanctions talk, however, prompting gold miner GV Gold to postpone its IPO.

Segezha, controlled by conglomerate Sistema AFKS.MM, aims to raise $400-$500 million, sources have told Reuters, and potential investors are receiving invitations to join pre-marketing.

UBS, JP Morgan, Bank of America, VTB Capital, Gazprombank and Renaissance Capital are arranging the deal, according to the sources. Segezha, which sources said plans to use proceeds for further development, declined to comment.

Investment bankers expect Russian companies, back on global investors' radar since late last year, to raise at least $10 billion in IPOs this year, the highest in more than a decade.

(Reporting by Olga Popova; writing by Katya Golubkova; editing by Jason Neely)

((ekaterina.golubkova@thomsonreuters.com; +7 495 775 1242;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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