Regions Group Developer Unveils IPO Plans

Regions Group, a Russian developer controlled by the family of Zelimkhan Mutsoyev, co-owner of leading fertilizer producer Silvinit, hopes to hold an initial public offering (IPO) but not before 2013 when global markets stabilize, Kommersant business daily reported on Thursday.

The developer plans to sell about 24 percent of its stock, but did not disclose where it would float.

The company’s owners value its business at around $1.5-2 billion. Regions will use the capital raised for purchasing shopping malls in the Russian regions.

Regions Group consolidates over 20 companies engaged in the construction and management of shopping centers. The company’s portfolio of projects includes 1.6 million square meters of floorspace.

In mid-April, O1 Properties, a Russian private investment and development firm owned by businessman Boris Mints, announced plans to hold a London IPO to raise at least $425 million to buy Moscow business centers Ducat Place III and Silver City and repay debts.

O1 Properties suspended its IPO plans in early May, however, due to unfavorable market conditions.

 

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