Qiwi intends to hold SPO
Qiwi PLC payment system intends to place the second part of depositary shares on the exchange. Experts and traders were waiting for this step, so the news on the market did not cause any hype. The value of the shares is estimated at approximately $ 280 million. The company itself will not receive funds from their sale, and Qiwi shareholders can earn $ 279.1 million in SPO.
Shareholders of the Qiwi PLC processing company, which owns the payment system of the same name, plan to float 8,197,866 American Depository Shares (ADS) on the exchange, for which the same number of ordinary Class B shares are held. According to the US Securities and Exchange Commission, underwriters are given the option to oversubscription of 1.229 million subscriptions. The only bookrunner is Credit Suisse, writes Expert.ru.
The company’s prospectus says that Japan’s Mitsui should become the largest seller of securities: it is ready to sell 3.5 million shares of its existing 5.74 million to investors. If demand exceeds supply, the organizing banks will have the right to redeem from shareholders and replenish an additional package ADS, then Mitsui will sell a total of more than 4 million shares and its stake in Qiwi (in votes) will decline from the current 14.4 to 5.9%, Vedomosti noted.
Recall, the processing company Qiwi conducted a successful IPO with listing in New York in May this year, from which its shareholders received more than $ 200 million. Thus, the September 18 session, the market value of Qiwi securities amounted to $ 34.05. If the placement took place at such a price, Mitsui would have earned $ 137.1 million. Qiwi turned out to be a shareholder in January 2011 with an estimate of $ 644 million. And yesterday, Qiwi’s capitalization was almost three times higher – $ 1.8 billion.
During the SPO, packages in Qiwi are also planned to be sold by Mail.ru Group (it will sell a maximum of 2.4 million shares, in this case its stake in the vote will decrease from 19.6 to 17.3%), Qiwi co-founders Andrei Romanenko (to 0.89 million shares, the share will decrease from 8.9 to 8.5%) and Andrey Muravyov (to 1 million shares, the share will decrease from 6 to 4.4%). The largest shareholder and CEO of Qiwi Sergey Solonin plans to sell no more than 0.46 million shares, so his share in the vote, on the contrary, will even increase from 33.1 to 40.5%.
Related topics QIWI shares valued at $ 884 million
Quotations of yesterday’s trading showed that Qiwi shareholders can earn $ 279.1 million in SPO. After additional placement, a total of 70.5% of Class A shares will remain with Qiwi management and members of the board of directors (10 votes each, unlike Class B shares affiliated with ADS and giving only one vote) and 65.8% of the votes at the meeting of shareholders, the prospectus said.
According to Investcafe analyst Timur Nigmatullin, “the additional placement of QIWI American depositary receipts was an expected event. The fact is that ADS companies trading on the NASDAQ have risen in price since the IPO, which took place in early May 2013, almost doubled – from $ 17 , 08, up to $ 34.05 per paper, in connection with this, the desire of the organizing banks to take good profits through the exercise of the option is understandable.
Let me remind you that the Greenshoe option re-subscription option gives the organizers the right to sell additional shares if the demand for securities exceeds expectations, which is actually the only mechanism for price stabilization of shares on the secondary market after the IPO. The mechanism looks like buying shares from shareholders at an IPO price and then placing them at a market price. In general, the news is neutral for both QIWI and its main shareholders in the short term due to the expected events. Nevertheless, in the medium and long term, the news is positive due to the high demand among investors for company receipts. “