LSR global offering could raise up to EUR 734m

The upcoming global offering by Russian property developer and building materials company LSR Group could raise up to $1.054 bn (EUR 734 mln), the company said, as it announced the price range for the offering that will see its shares listed on London Stock Exchange.

LSR Group said its shares would be priced in an indicative range of $65 to $82.5 per share, bringing in some $553 million to $1.054 bn. The final price and size of the offering, which involves both shares and global depository receipts (GDRs) that are being sold by existing shareholders, will be announced 8 November.

The offering will pave the way for a capital increase through which existing shareholders can re-invest proceeds from that offering in the company. Funds from that capital increase are expected to raise between $553 mln and $702 mln, once certain fees and expenses associated with the offering are deducted, which will be used to fund the company's growth strategy. After that closed subscription, LSR says it expects to have an implied market capitalisation of about $6.1 bn to $7.7 bln.

Founded in 1993, LSR is a real estate development, construction and building materials companies in St. Petersburg and the Leningrad region. LSR Group’s portfolio of real estate development projects includes 34 completed projects and 39 properties at various stages of development. As of 30 June, the group had a development portfolio with a potential net sellable and leasable area of approximately 7.8 million m² located primarily in St. Petersburg and the Leningrad region.