AFI Development has announced a price range of $10-$13 (about £4.98 and £6.48 or EUR 7.36 to EUR 9.57) per share for its initial public offer on London Stock Exchange. The company is offering 100,000 new shares in the form of global depositary receipts (GDRs), of which it has granted an option to acquire 10%. The share value implies a market capitalisation of between $4.2 bn and $5.5 bn, AFI said in a statement. Proceeds will be used to fund the development pipeline and to acquire new projects in Moscow and its surroundings, as well as in other major Russian cities.
AFI Development has announced a price range of $10-$13 (about £4.98 and £6.48 or EUR 7.36 to EUR 9.57) per share for its initial public offer on London Stock Exchange. The company is offering 100,000 new shares in the form of global depositary receipts (GDRs), of which it has granted an option to acquire 10%. The share value implies a market capitalisation of between $4.2 bn and $5.5 bn, AFI said in a statement. Proceeds will be used to fund the development pipeline and to acquire new projects in Moscow and its surroundings, as well as in other major Russian cities.
AFI Development launched its road show yesterday and expects the initial offer price to be finalised on May 3, 2007. The joint global co-ordinators for the offering are Deutsche Bank and Morgan Stanley while the joint bookrunners are Deutsche Bank, Goldman Sachs International and Morgan Stanley. The co-lead manager is Citi.
AFI focuses on developing property solely in Russia. It has a portfolio of 21 development projects across Russia valued by global advisor Jones Lang LaSalle at $3.69 bn. AFI has another 12 projects in the pipeline. The company's existing shareholders are Africa Israel Investments (88%) and Nirro Group (12%), a company controlled by Alexander Khaldey, a director of AFI and ceo of Stroyinkom-K, the company's Russian operating subsidiary.