GPI floats above expectation

As the market opened, global depositary receipts (GDRs) were trading at $17.25 having been initially priced at $15.00 – one GDR representing three ordinary shares.

Part of one of the largest privately-owned transportation and infrastructure groups in Russia, N-Trans group, the operator’s results were something of a surprise. Of the other four IPOs by Russian companies on the London Stock Exchange so far this year, two closed first day trading down, one closed flat and one closed up 2%. Many other non-Russian IPOs have also struggled in early trading.

In addition, before the market opened a further 10% of Global Ports’ shares were released onto the market, taking advantage of the oversubscription. This takes the value of the entire global offer to US$588m.

GPI’s free float following the exercise of the over-allotment option represents approximately 25% of the group’s issued share capital.

GPI intends to use the net proceeds of the offering to fund its capital investment programme in the Russian port segment; its container terminals account for 30% of the total container throughput of Russian ports and its oil terminals export around 28% of the total volume of the former Soviet Union.