Alrosa, a state-owned diamond miner based in Russia, projected to raise USD1.3 billion in its planned initial public offering. The amount was a lower figure from an earlier announced range.
The IPO would the only sale strategy of the Russian government this year. The IPO was part of the multi-year privatization program to revive the country's USD2.1 trillion economy. The Finance Ministry had to reduced its IPO projection due to program implementation delays and disputes and overall investor sentiment. The amount expected from state asset sales this year had fallen to just over USD.5 billion from USD13.44 billion.
Alrosa would be offering its shares at RUB35 per share. This would put the diamond miner's market capitalization at RUB258 billion or USD8.12 billion. Alrosa would also be putting up a 2% ownership stake in Treasury shares for sale.
The book of the stake sale on the Moscow bourse had been closed on October 25. It was closed after a two-week marketing process had been concluded.
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