VTB Capital values Russian Helicopters at $2.5-3 bln ahead of IPO

VTB Capital, the investment business of Russia’s second largest lender VTB, has valued Russian Helicopters, which designs and manufactures civil and military helicopters, at $2.5-3 billion ahead of the company’s initial public offering (IPO) in London and Moscow, a source close to the IPO lead managers said on Thursday.

Russian Helicopters intends to hold an IPO by placing ordinary shares held by its core shareholder, Oboronprom state defense industry company, and new shares represented by GDRs, in London and Moscow to raise $500 million. One GDR represents one ordinary share.

The company has announced it intends to use the net proceeds from the offering to pay off existing debt and to fund certain mandatory tender offers for shares in its subsidiaries.

Bank of America Merrill Lynch, BNP Paribas and VTB Capital have been appointed as joint global coordinators and bookrunners.

BoA Merrill Lynch was earlier reported to value the company at $2.2-3.2 billion.

Russian Helicopters has also applied for its shares to be listed on Russia’s RTS and MICEX stock exchanges.

MOSCOW, April 14 (RIA Novosti) 

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