IPO to raise USD 300 million for Russian Sea Group

Russian Sea Group of Companies is about to finish choosing underwriters for the IPO on the Russian exchanges and at the LSE in 2009. The Group is planning to raise ca.300 million USD.

In early June 2008 Russian Sea was about to finish admitting applications from banks willing to participate in the IPO, the main co-owner of the Group Maxim Vorobyov told Vedomosti. In his earlier interviews Vorobyov also said that the group would like to choose one foreign bank with a large customers' base and one bank in Russia.

The group counts on collecting ca.300 million, Russian Sea's General Director Dmitry Denezhkin said. The volume of the IPO put up for sale will amount to at least 20% and the group is going to retain a share of 51%. Investors will be offered new and existing shares.

Maxim Vorobyov is the largest co-owner of the company, but several managers also have got shares (their packs and names are undisclosed). According to Denezhkin, in July-August 2008 the company will complete preparation of its option program: ca.5% will be issued for the sake of motivating the managers and another 11% will be issued in order to maintain the existing relations with minor stakeholders.

Registered in Saint Petersburg in December 2007 OAO Russian Sea Group of Companies (plc) is to become the parent company for the group. ZAO Russian Sea (closed JSC), one of the group's members, said that the share of Cyprus-based Korsiko Limited in its authorized capital stock decreased from 100% to zero. On 29 May Federal Financial Markets Service registered a report on an extra issue of 72,305,874 common shares each worth RUB100.00 by OAO Russian Sea Group of Companies. The whole issue was purchased by Korsiko Limited, but the company paid for the issue not in monetary form, but by its 100% shares in two main companies of the group - ZAO Russian Sea (closed JSC) and ZAO Russian Fish Company (closed JSC) (the sum of the contract was equal to the sum estimated by independent valuers). All the remaining shares of the group's companies were purchased by OAO Russian Sea Group of Companies at nominal value. Therefore, now it is 100% owner of all the companies of the group and its stake holder is Korsiko Limited (100% minus 1 share). The shares of OAO Russian Sea Group of Companies are to be offered to investors.

As the welfare of the population gets better, the consumers normally switch to fish products and in this situation Russian Sea may be a very interesting investment.