The Pipe Metallurgical Company (TMK) plans to raise 10.41 billion rubles as part of a secondary offering (SPO) of ordinary shares, TASS reports , citing the company’s press release for the London Stock Exchange. The placement price of shares will be 75 rubles. for paper. This is almost 6% lower than the price of TMK shares at the opening of the Moscow Exchange on Friday (RUB 79.55), the agency notes.

It was previously reported that TMK plans to place almost 138.9 million already issued ordinary shares (13.4% of the authorized capital) among institutional investors. This is necessary to buy out a similar stake in TMK from VTB Bank as part of the exercise of a call option.

TMK announced the start of an SPO on Tuesday evening, recalls Prime. At first, the company targeted investors at a price in the range of 74.5 rubles. for the security “before the market”, but during the placement it narrowed the target to 74.5-75 rubles. for paper. The order book closed on Thursday at 19.00 Moscow time.

TMK's subsidiary, Rockarrow Investments Limited, will sell these shares, and the proceeds will be used to purchase a similar number of TMK shares from VTB in accordance with the option under the agreement with the bank. The cost of repurchasing ordinary shares from VTB will not be higher than the proceeds from their placement. The organizers are Credit Suisse, Morgan Stanley, VTB Capital and Aton.

TMK is the largest Russian pipe manufacturer and one of the three leaders in the global pipe business. The main shareholder of TMK is the Chairman of the Board of Directors of the company Dmitry Pumpyansky, who owns 65.05% of the company through TMK Steel Holding Ltd.

TMK expects to raise 10.41 billion rubles through SPO