OREANDA-NEWS. According to OGK-2 company press release circulated on September 28, OGK-2 had set the placement price for its IPO at $0.16 per share ($16 per GDR), which is somewhat lower than the mid-point of the price range announced previously ($0.1475-0.18 per share). Meanwhile, the company has cut the volume of additional shares to around 6.5 bln (24.7% of pre-money equity), which will allow the company to raise only $1,046 mln via its IPO. Simultaneously, the company refused to place a portion of the issue via 5-year convertible bonds.

The IPO price assumes a valuation of $500/kW, based on estimates provided by Alfa Bank. The stock is now trading at $481/kW, while experts' 12-month target price implies a valuation of $534/kW. Since the placement price is only marginally (4%) higher than the current market price of the company, the Alfa Bank analysts view this news as neutral for the market.