MOSCOW: Russian real estate developer Etalon completed its London stock-market float on Friday, raising $575 million in the biggest Russian IPO of the year so far.
The company, which said it would use 70 percent of the proceeds to buy up new land plots and much of the rest to fund construction costs, raised $500 million from the sale of new shares.
Existing shareholders including owners the Zarenkov family generated a further $75 million, around half the amount they had hoped for, as investors continued to shun efforts by Russian businessmen to boost their personal wealth via IPOs.
Russian mobile phone retailer Euroset postponed its $1.5 billion stock market float late on Thursday, having failed to secure enough demand for an IPO planned mainly as a cash-in for tycoon owner Alexander Mamut.
Etalon priced its IPO at the bottom end of the expected range at $7 per Global Depository Receipt (GDR), confirming an earlier Reuters report.
Its IPO is the third of the year by a Russian private company and also the biggest, pushing the $360 million raised by pumps manufacturer Hydraulic into second place.
The combined total raised by Russian IPOs in 2011 is now just under $1.3 billion, compared to around $5.5 billion last year.
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