Belarus Cracks Champagne After Opening First IPO

Belarus started its first initial public offering on Wednesday by floating the Minsk Sparkling Wine plant’s shares on a local stock exchange.

Investors can acquire a limit of up to 1,000 shares in the state-owned plant’s stock until June 15, 2012. The share price was set at 171,450 Belarusian rubles ($21.40) per share.

Net profit per share may amount to 16,000 Belarusian rubles ($2) if the plant sells 240,000 shares issued for the IPO. Dividends are expected to be nearly 3,000 Belarusian rubles ($0.375) per share.

Champagne and sparkling wine production at the plant stood at 1.333 million deciliters worth of total 108.509 million Belarusian rubles ($13.50 million) in 2011.

The Belarusian government may hold IPOs for other state enterprises if this flotation is successful, Deputy Prime Minister Sergei Rumas said.

“Today’s IPO attempt is the government’s first pilot project,” Rumas said. “We will make an analysis of the results…and I am very likely to say that we will suggest … extending this experience to several [other] companies in case of successful offering.”


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