Metallurgical Industrial Complex of Magnitogorsk to offer no more than 10% of shares

It’s not easy to determine whether the company has chosen the most suitable moment for the initial public offering as the market opportunities may all have changed in a few months’ and even weeks’ time. Yet Metallurgical Industrial Complex of Magnitogorsk may actually do okay as the investors have a positive view of the company. The main thing is to be able to explain what the Complex is planning to do with the money,’ the expert from FINAM Investment Company Sergey Kharchenko said to UrBC representative.

According to Vedomosti newspaper, the Complex is now choosing the banks that will offer up to 10% of its shares at London stock exchange in the first half of 2007.

‘The maximum amount of shares to be offered is 10%, most likely, a 3% to 5% share holding, with the probable price of $.75-$.85 per share. It turned out this summer that the company’s management would not be satisfied with a smaller sum,’ Mr Kharchenko said.

He also noted that IPO was too expensive to be a simple advertising trick. The Complex must be interested in making money, even though it is still unclear who is going to get it – the company itself or its shareholders who want a return on investments.

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