Etalon goes public to fund acquisitions

Russian real estate developer Etalon Group has announced plans to launch an Initial Public Offering on the Main Market of the London stock exchange in an effort to fund new acquisitions and to finance existing projects.

The company intends to offer $500 mln (EUR 354 mln) worth of new shares, while the number of existing shares to be offered will be determined at a later stage. The offering will also include an over-allotment option of 15% for existing shareholders.

Etalon said it intends to use the majority of the net proceeds for the acquisition of new land plots, with the balance used to finance working capital requirements, including the construction costs of new and existing projects. Credit Suisse, Renaissance Capital and VTB Capital are acting as joint global coordinators and joint bookrunners.

'The offering is another important milestone in the company's long history and will allow us to build on the solid platform for growth that we have already established,' said Chairman Viacheslav Zarenkov. 'It will provide important funds to acquire new projects, as well as to further expand operations in our key markets in order to derive maximum benefit from a recovering Russian economy.'

Etalon Group is one of Russia's largest residential real estate developers. Since its founding in 1987, the company has built a leading position in the St. Petersburg Metropolitan Area, and also has a growing presence in the Moscow Metropolitan Area market. The company primarily focuses on the development of high-rise residential complexes. Its portfolio comprises 28 development projects, with a total of 3.13 million m² of net sellable area.