10% of Multisistema OJSC shares placed in the course of IPO
On December 27, 2012 Multisistema OJSC, the flagship company that works in the Moscow region's utilities sector, launched its IPO with the Moscow Exchange on the Exchange"s Innovation and Investment Market (IIM).
In the course of the IPO, investors purchased RUB10 million Multisistema OJSC ordinary shares that corresponds to 10% of the company"s authorized capital. Securities were offered for a fixed price of RUB9.8 per share. As a result, the placement volume equaled RUB98 million, and the market capitalization of Multisistema OJSC reached RUB980 million. IC KOMKON-3 (OJSC) and IC FINAM (CJSC) acted as the organizer and the co-organizer of the IPO.
The existing shareholders of Multisistema OJSC had intended to place up to 35% (RUB35 million ordinary shares) while going public on the Moscow Excahnge"s IIM. However, concerning uncertain conditions on the financial markets and other issuers" IPO cancellation, placing the 10% block of Multisistema shares should be evaluated highly positive. Besides, the existing company shareholders regard the possibility to go public in summer 2013, if the financial market situation tends to stabilize.
The funds raised by the IPO will be invested into Multisistema"s long-term business development strategy. The main volume of the resources will be used to finance a new company segment targeting at energy service agreement negotiation. The strategy will lead to diversifying the company"s business by conquering a prospective niche on the capital-intensive market. In addition to tracking of new business paths, the investment program of Multisistema OJSC includes the issues of stabilization and maintenance of "Construction" business project and fostering "Water meter service" project performance.
Dmitry Chaly, CEO at Multisistema OJSC, said:
"In general, we are satisfied with the IPO results. The investors acquired 10% stake in the company"s share capital that was lower than we expected initially, however we consider this as a satisfactory result in such uncertain market conditions. I believe that the free-float share obtained will be enough to ensure both real market estimation of the company"s capitalization and maintain sufficient liquidity for the securities. However, we hang on to place at least a third of Multisistema shares on the public market and make an SPO already next summer when financial markets conditions will be more favourable."
Igor Belyasov, Head of Corporate Finance, FINAM, said:
"Outcomes of the bids collection demonstrated investors" interest in actual "qualitative" ideas despite the volatility in the financial markets. In my opinion, Multisistema meets this definition completely: it is both the accessible dynamically developing business with a transparent development strategy and the unique dividend history on the market. I am sure that shareholders will not be disappointed in their choice and will see a rise in value of their investments in the first issuer from the public utilities sphere."
Konstantin Guskov, Head of Corporate Finance, "KOMKON-3" Investment Company, said:
"Despite only a third of planned funds was raised during the IPO, the successful implementation of the Multisistema"s investment program will not suffer considerably, and therefore, the holding will continue improving its financial performance actively that will undoubtedly contribute to the shares value growth. In my view Multisistema will be more attractive investment vehicle by the upcoming SPO as it will meet existing requirements for corporate governance, actively develop new business directions and show high growth rates".
Gennady Margolit, the Executive Director of the Innovation and Investment Market at the Moscow Exchange, said:
"The IIM has provided the comfort infrastructure and sufficient liquidity for both the issuers and investors. Therefore more and more Russian high-tech companies go public through our market. The successful debut of Multisistema has confirmed this clearly."
For reference:
Multisistema OJSC is a full service holding that works in the Moscow region's utilities sector and deals with production of metering devices. The holding runs its business on the market of communal infrastructure service and development. The key directions of the holding"s business include installation, technical support, repair and testing of water meters, MEP systems support, housing and social facility turnaround maintenance; construction of shopping and leisure centers and multilevel parking lots in the Moscow region, rendering services for enhancing energy efficiency.
Moscow Exchange Innovation and Investment Market (IIM) is a sector for high technology companies, created together with ROSNANO. At the moment securities of 30 issuers including 8 venture funds with a total capitalization of RUB34.3 billion are traded in the sector.
The Innovation and Investment Market consists of three major segments for companies at different maturity and capitalization levels, as well as for different investor groups. Innovation and Investment Market (IIM) is a sector where innovative companies may conduct their IPOs/SPOs or admit their securities to the MICEX Stock Exchange secondary market in any of its trading modes.
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