Английский язык. Практический курс для решения бизнес-задач
Шрифт:
A look at the figures shows just how dramatically Russian equity……. have grown in the last two years – a period in which investors have been inundated with…….. coming out of Russia. Market………were clearly right. With developed equity markets generally in decline, investors became willing to look further afield for attractive…….. With the Russian economy growing rapidly, politics stabilizing, and more companies embracing higher standards of……… and corporate………., Russia seemed like a good bet. Looking at the returns that the majority of the Russia and Eastern Europe-dedicated…….. have boasted in the past two years, it becomes even clearer just why investor demand for new Russian issues has been so strong, and why in turn so many companies from the region have decided to go……..
While raising capital was certainly one of the factors driving Russian IPOs, in many cases the need to raise……. finance was secondary. The status and…….. which comes with a public….. influenced some companies. And there is also the idea that…….. foreign investors gives Russian companies a degree of political protection at home.
A key driver for rising investor demand has been a notable desire on the part of investors to diversify their Russia……… away from politically risky resource stocks and into more dynamic, rapidly growing…….. companies. It was this voracious appetite for new, liquid stocks offering……… to Russian growth which made the Sistema IPO such a resounding success, and which paved the way for numerous other consumer-oriented companies – from automotive to internet to food & beverage – to make their capital markets debuts in 2004—2005.
Many of the consumer companies which followed Sistema also found strong investor……… although not all achieved the high……… initially projected. A number of investors considered some of the Russian IPOs to be……… too aggressively.
While……… and exposure to consumer growth describe much of the recent investor interest in Russian equities, it has not all been about the consumer story. Lest we forget, resource companies still have the heaviest…….. in the indexes, and many domestic and foreign portfolio investors are still willing to invest in the enticing if less predictable
VimpelCom’s IPO profile
VimpelCom’s listing on the…… in November 1996 was Russia’s first ever IPO in any form. The company…….. at the top of the announced price……, which was increased in response to strong demand from $15.75—$18.75 to $19.50—$20.50 the day before the IPO. The stock was one of the most actively…….. and its price rose by 40% on the first day……… at $20.50, the VimpelCom ADSs……. at $29. By the end of 1996 the stock was up 50% from its……. price. The structure of the offer comprised 3.9 million ADSs offered to investors in the U.S. and Canada, while 1.5 million ADSs were offered…….. «Everyone knows that the cellular business is the most dynamic, so the combination of Russia and telecommunications just hypnotized investors,» said Valery Antonov, a telecommunications…….. with Creditanstalt Grant.
The success of VimpelCom’s IPO depended on the results of Russian president Boris Yeltsin’s cardiac surgery, which was carried out during the……… «Nobody would buy Russian………. in a situation of complete uncertainty of the country’s further political line,» said VimpelCom’s head of IR Valery Goldin.
«Russia’s leading cellular telephone company, Vimpel-Communications A.O., is set for a roughly $90 million IPO as the first Russian company to be listed on the………. VimpelCom, as the company is known, is also a case study of……. political connections into cash in the Wild West business atmosphere of today’s Russia.»
Wimm-Bill-Dann IPO profile
WBD’s IPO was…….. Best European Equity Deal of 2002 by EuroWeek and Institutional Investor magazines. Investors striving to gain exposure to the first ever offering of a Russian consumer goods company were not frightened by the information……. in the IPO……… about the criminal past of the company’s biggest shareholder, Gavriil Yushvaev, and about the…….. of other shareholders and directors with Trinity Holding, which Russian media have linked to organized crime. The issue, which was placed in the middle of the…….. price range, was five times oversubscribed. The……. price rose 15.8% on the first day of trading in light of the news that Danone SA bought 4% of WBD through the IPO. Among other investors who bought in WBD were large……… investment funds and investment banks. The substantial interest from U.S. investors in WBD’s IPO was partly due to the fact that Templeton Strategic Emerging Markets Fund…….. a 1.48%…… in the company earlier in 2002.
«We are the first Russian consumer……. company to list on the NYSE. In addition to raising capital to help fund our development, this IPO will enhance our transparency and demonstrate our……. to becoming an international……,» said David Iakobashvili…… of the Board.
Source: PBN Company, Russia’s IPO Pioneers (excerpts), www.pbnсo.com
Terms:
Big Board, stock, prospectus, exposure, governance, Chairman, equity, international, acquired, attracting, capital, announced, player, household, overseas, awarded, involvement, issues, IPOs, conditions, returns, transparency, funds, public, profile, listing, holdings, floated, consumer, demand, goods, commitment, multiples, priced, weighting, oversubscribed, range, traded, opening, closed, offer, analyst, securities, leveraging, disclosed, stake, NYSE, road-show
Exercise 4. You work in the investor relations department of Mechel, and you are to write a brief press-release about Mechel’s IPO using information given below.
Mechel: IPO profile
Mechel’s IPO made it the first Russian company in more than two years to list shares in the U.S. as well as Russia’s first metals firm to list on the NYSE. The offering came amid growing world steel prices, which helped Mechel to place the stock at the top of the expected price range and to raise $291 million. About 20% of the offered ADRs represented existing shares and 80% – new shares. A month later, the lead underwriter of the offering, UBS Limited, exercised its option for an additional 1.5% stake. According to UBS, 90% of the offering was taken by foreign investment funds, mainly from the United States. Mechel planned to use the proceeds to take part in an auction for a 17.8% stake in MMK but later decided not to bid, choosing instead to sell its own stake in MMK to the plant’s current management. It will invest the proceeds into developing its coal capacity as well as modernization of its steel facilities.
Key Data
Date of IPO: October 29, 2004
Stock exchange: NYSE
Underwriters
Lead managers: UBS Limited
Co-managers: JP Morgan, Troika Dialog, Morgan Stanley
Form of offer: ADS (each ADS represents 3 common shares)
Number of securities offered: 13.87 million
By the company: 11.1 million
By existing holders: 2.77 million
Number of securities subject to the over-allotment option: 2.08 million
Percentage of the share capital offered: 11.5%
Price range: $19—$21
Offer price: $21
Total capital raised: $335 million
Use of proceeds: Capital expenditures, including equipment purchases and modernization of facilities; acquisition of additional operations and subsoil licenses.
«There is a big, wide investor base that can’t access the steel sector. These shares are a good way to get access to an under-represented sector and diversify a Russia portfolio» – Anton Khmelnitsky, Brunswick Asset Management.
Mechel: Company profile