Russian fertiliser producer Uralchem said on Wednesday it will float 40 percent of new shares in a London Initial Public Offering (IPO) as it seeks to pay down a mammoth debt pile. Sources told Reuters in February the group intended to float - a long-planned move by majority owner and Russian tycoon Dmitry Mazepin.
The company said in a statement it would launch the new shares in London as Global Depository Receipts (GDRs), and would apply for trading on the London Stock Exchange. If successful, the IPO would be one of two from former Soviet Union-based firms seeking to list in London this year so far, after Ukrainian egg producer Avangard announced on Tuesday it would also launch an IPO.
Uralchem produces a range of fertilisers for sale in Russia and overseas markets. Fertiliser is used to maximise production of food crops such as grain, and prices tend to follow broad economic trends. The company said in November it had agreed to restructure some $867.6 million of debt with Russia's Sberbank.
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