Veles Capital: Syktyvkar Tissue Seeks to Raise RUR 700mln during IPO
OREANDA-NEWS. April 22, 2011. Syktyvkar Tissue Group, JSC (STG) seeks to raise up to 700 million RUB during IPO organized by VELES Capital IC and ALOR INVEST. IPO is scheduled for April - May 2011 on MICEX.
Syktyvkar Tissue Group is one of the biggest Russian pulp and paper mill, specializing on the production of market base paper, toilet paper, paper towels and napkins. Company’s market share of toilet paper production was 8% in 2010 and of the market base paper was 26% in the same period. Paper napkins and towels factory was run in 2008, company had 2% market share (in unit terms) in 2010.
The investment program is estimated in €60 mln till 2015, cash from IPO will be a part of this program. Other part of investments will be financed by own and borrowed sources. It is planned to modernize the existing equipment, to increase capacities in
"STG is the largest producer of market base paper which is used in the production of toilet paper, paper towels and handkerchiefs, - said Mark Reznik, CEO STG. – Expecting significant consumption growth of sanitary-hygienic products, we are going to be ready for changes that will be in the next five years. The proposed investment program will allow us not only to save but also to increase the share of STG on the market tissue in
Mikhail Zak, managing director of Veles Capital Investment Group added that all the necessary procedures for IPO will be completed soon: "This will be the first public placement of shares of the Russian companies of the industry. Clear and transparent STG’s business gives reasons for expectation for a successful placement among institutional and private investors".
According to Maxim Dremin, ALOR INVEST deputy CEO, Russia lags in the consumption of tissue versus developed countries and the countries of Eastern Europe: "It is obvious that in the upcoming years this gap will be reduced, which implies a significant growth of consumption of sanitary-hygienic products. STG should become a beneficiary of this growth".
Syktyvkar Tissue Group was founded in 1972, when on base of
VELES Capital IC, LLC have been operating in Russian fond market since 1995 and it is one of the five largest investment companies in
ALOR INVEST, JSC have been operating on the Russian stock market since 1993 and specializing in a range of financial services to corporate clients. Company provides brokerage services in all exchanges with the personalized service and advanced tools, including the commodity market, organizing bond. Company organizes placement of stocks of public corporations on market inclusion of shares in the quotation lists. Also ALOR INVEST The company has National Ratinf Agency individual reliability rating at AA + (very high reliability, the first level). In 2009, ALOR INVEST organized the initial public offering of shares of Human Stem Cell Institute, which became the first IPO in
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