‘The results of the public offering launched by Magnitogorsk Metallurgical Industrial Complex appear to be rather controversial. On the one hand, the company did achieve its goal of offering a certain number of shares, but on the other, the shares were offered more cheaply than the in the course of regular transactions, which is why they dropped by almost 5% at MICEX the next day. All in all, this IPO failed our expectations, although the prices could actually be even lower,’ Director of Ural subsidiary of Accord-Invest Investment Company Konstantin Selyanin said to UrBC.

Magnitogorsk Metallurgical Industrial Complex managed to get as much as $1 billion through a public offering at London Stock Exchange; the buyers were offered 80 million GDRs for 1.04 billion shares for $12.5 per receipt or $.961538 per share, so the share price was actually 7.7% lower than that used at RTS and MICEX the day before. The company’s capitalization amounted to $11.22 billion. The share price decreased by 7.21% and by 5.6% at RTS and MICEX, respectively.

‘The company’s stock definitely failed to hit the highest price range, and the reason for this is too many shares in the metallurgical market segment: this turned out to be only one IPO out of many,’ Mr. Selyanin explained.