Moscow and London are the main targets for IPO of Phosagro
2011-06-17 16:01:32
Russian phosphate fertilizer producer is aiming to generate 1 billion USD from the initial public offering in Moscow and London. According to Maxim Volkov, CEO of the company the main aim of such action is to show the potential investors in Russia as well as abroad that the company has high value due to its low debt levels and strong cash flows.
The company was granted 21% share limitation for the overseas sale by the Russian financial authorities. Total volume of IPO (both Moscow and London) will be set at 15% of the total portfolio of the company. Controlling stake of the company belongs to Andrei Guryev, Russian senator.
Recently there has been a growing demand for the fertilizers, especially “full cycle” ones. Increased demand reflected in recent rise of Mosaic, another fertilizer producer and failed attempt of BHP Billiton to buy PotashCorp, the world largest producer of fertilizers.