According to the company's press release, Pharmstandard's placement price was set at $58.2 per common share and $14.55 per GDR. Thus, based on the placement price, the company's market cap amounted to $2.2 bln.
The company's shareholders managed to raise nearly $880 mln in an IPO as a result of flotation of 15.117 mln existing common shares. A total of 6.901 mln was floated as shares and 8.216 mln in the form of GDRs which corresponds to 18.3% and 21.7% of the company's charter capital, respectively.
Overall, we view Pharmstandard's flotation in Russia and on LSE as successful. Since the shares were floated at the upper level of the previously announced target band, we can speak of stronger investment appeal of the Russian pharmaceutical market as a whole which could drive up stock valuations of other companies in the sector whose shares trade on the market.
According to our estimates, the fair price of Pharmstandard is $53.2 per share.
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