Pipe Metallurgical Company determined the price range for the upcoming initial public offering of its ordinary shares and Global Depositary Receipts today. The enterprise is planning to offer the GDRs at London Stock Exchange and to offer the ordinary shares at Russian Trading System, another bourse. These shares will be offered by the company’s shareholder TMK Steel Limited.

The prices range from $4.60 to $5.40 per ordinary share and from $18.40 to $21.60 per GDR, each GDR representing four shares. This price range is in compliance with the enterprise’s market capitalization of $4-$4.7bn

The offer consists of 180m shares, with TMK Steel Limited allowing for an over-allotment option of another 18m. The determined price bracket (given that the over-allotment shares go unsold) suggests the transaction may be worth something between $828m-$972m.

In the meantime, TMK Steel Limited also offers the company’s employees to buy 4.5m ordinary shares at 123 RUR ($4.57) per share, which means a .8% discount compared with the IPO.

After the over-allotment shares and the other stocks have been sold, the volume of the public offering will be equal to free float (23.2% of ordinary shares). TMK Steel Limited is going to use the profit to finance a strategic investment program, get rid of debts and finance the company’s current activity, reports the spokesperson for Pipe Metallurgical Company.