Uralkali will not be placed in London

Uralkali OJSC decided not to conduct the public placement of the company's shares on the London Stock Exchange, Polit.ru said in the company.

According to Uralkalia shareholders, it is currently not possible to get an adequate assessment of the company from potential investors.

The decision on the approval of the public placement of shares of no more than 29% of the authorized capital (no more than 616.073.100 ordinary shares) was adopted at the Uralkali OJSC of OJSC in August 2006. On September 21, 2006, the Federal Service for Financial Markets of the Russian Federation issued the company permission to apply outside Russia to 29% of its shares.

On September 25, 2006, Uralkali OJSC announced the parameters of the public placement of securities - up to 442,722,876 ordinary shares in the form of global depository receipts (GDR) and ordinary shares were proposed. The preliminary price range was installed in the amount of 10.25 to 12.25 US dollars for the GDR or from $ 2.05 to $ 2.45 for an ordinary share.

Following the results of meetings with the alleged investors from among the leading world financial institutions, significant demand was noted for the shares of Uralkali OJSC on their part. However, it was impossible to place shares within the framework of the previously announced price range, which, according to shareholders, reflects a fair assessment of the company. As a result, it was decided not to conduct public placement.

The main shareholder of Uralkali Dmitry Rybolovlev as follows commented on the company's refusal: “Taking into account the attractiveness of the industry as a whole, the high potential of the growth of Uralkalia and its strong financial positions, I believe that, despite the preparation of the high level of investors' interest in the company, the market did not fully evaluate its real potential. In the case of public placement of shares, the company at the moment would be significantly underestimated. In these conditions, it seems appropriate to us to consider the alternative options for the development of "Uralkali". An increase in the capitalization of Uralkalia is still one of the priority tasks of management. The company will independently finance its investment program aimed at the growth of assets. ”

In essence, the rejection of plans for placing in London does not mean that the company will refuse to place a package in Russia (a package of 10-15 percent may well be placed on Russian exchanges). The option of selling a package of a strategic investor is also quite possible. At least in the Russian media, a similar thought was also expressed.

The decision, according to analysts, is associated with the results of the assessment of the company and real hooks that it could attract as a result of placement.