Acron has set the price range of the SPO at USD 12-15 per GDR and USD 120-150 per share, Interfax reported. The shares and GDRs, which stand for 10% of Acron’s charter capital, are being offered by Dorogobuzh, an Acron subsidiary, and some other structures controlled by Acron’s main beneficiary. Ten GDRs equal one Acron share. As was reported, Acron plans to float up to 4% of the Dorogobuzh share package within its SPO on the London Stock Exchange (Acron owns a total of 8.54% in Dorogobuzh). The remaining 6% of floated securities are to include shares owned by the company’s main shareholder, Vyacheslav Kantor. In total, Kantor controls 71% of Acron shares. Acron plans to allocate the funds received from the placement of Dorogobuzh’s shares to the modernization of current production capacities.
In line with our expectations, the floatation price range was above the market levels and appeared quite moderate at the same time. Given the favorable conditions on the global mineral fertilizer market, high performances of the company’s financial indicators, proper financial investments and large-scale investment plans, we expect investors to show interest in Acron shares. Therefore, the shares will most likely be floated close to the upper limit of the price range, which should lend support to Acron’s current market valuations.
The target price for Acron (RTS: AKRN) is USD 153.4 per share, which implies an upside of nearly 30% and corresponds to a Buy recommendation.
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