Three days after the IPO, the company’s shares were traded only by funds, they brought down the value of Oleg Deripaska’s asset by $ 600 million.
Today, with the opening of the London Stock Exchange, brokers were able to trade in the shares of En + Oleg Deripaska, an electro-metallurgical company, following the rules of the exchange. Since the listing on last Friday, En + stocks could only be traded by funds and professional players, the company’s capitalization fell by 5% in three days to $ 7.4 billion.
Trades involving brokers opened with a growth of 3%. In the first few seconds, En + capitalization increased by $ 200 million to $ 7.6 billion. By 13:40 MSK Deripaska added to its price – its capitalization reached $ 7.8 billion. For IPO, investors rated the company at $ 8 billion (after raising funds from the sale of new shares ).
At 13:00 Moscow time, trading began on En + receipts on the Moscow stock exchange. But here the price has not changed yet in comparison with the price of opening.
En + attracted $ 1.5 billion for IPO. Even before the offering to buy shares for $ 500 million, the structures of the Chinese trader CEFC China Energy Company – AnAn Group agreed with Deripaska’s structures. For $ 1 billion, new securities were placed.
The paper has not yet been terminated, volumes as today in Moscow, and on Friday and Monday in London are low, said Andrey Tretelnikov, investment director of TKC Partners. The fall from the placement price of $ 14 per share was only 4%, the expert said.
Foreign investors accounted for about 85% of applications, said a person close to one of the parties to the placement. The largest package – $ 250 million – was bought by the Qatar Investment Authority (QIA), two people who were close to the various participants of the placement said. Singapore’s Government Investment Corp. bought for $ 45 million, one of the interlocutors of Vedomosti knows. Russian investors – about $ 220 million, they say, for $ 50 million bought RFPI with partners, a little – the company associated with Suleiman Kerimov, Bonum Capital.
The largest buyers of En + securities during the past year were among the largest foreign investors in Russia. In December, QIA together with the trader Glencore bought 19.5% of Rosneft, and this year 14.16% of them are sold by CEFC, VTB is ready to finance this by a bridge loan of $ 5.1 billion. VTB is ready to help in buying En +: Bank and CEFC can conclude an agreement.
Before the placement of Deripaska and his family members, 95.65% of En + belonged, another 4.35% was from VTB, now it will be 76.75 and 3.65%, says a person close to one of the organizers of the placement. Until the end of the year En + will hold another additional share issue: Glencore will change 8.75% of UC Rusal to new En + securities. En + shares will be converted at the placement price, and UC Rusal’s shares will be valued at 60-day average quotes on the Hong Kong stock exchange. The share of Glencore in En + will be about 11%, says one of Vedomosti’s interlocutors: the share of Deripaska will drop to 69%. The new large shareholders of En + – Glencore and AnAn Group – will receive the same rights as the shareholders of UC Rusal, said in the prospectus for placement, that is, they will be able to block some major transactions and reorganize the company.
After the IPO, the share of Oleg Deripaska’s wife, Polina, also declined. Prior to Polina’s placement, Deripaska owned 6.9% of En + shares, the company reported in the prospectus for an IPO on the London Stock Exchange. In October 2017, En + held an additional share issue in favor of the family structures of the main owner. After the IPO, Polina Deripaska’s share should decrease to 5.7%, and after the sale of Glencore shares – up to 5.2%. Oleg Deripaska has an option, allowing at any time to redeem both the entire package, and part of it. On what terms the shares went to Polina Deripaska, and also on what terms her husband can buy them, the Prospectus does not mention the IPO.