Polyus $858 million share offer

Overview:

• Polyus has issued 6,015,690 new shares at a price of $66.50 per ordinary share.
• Its holding company Polyus Gold International has sold the equivalent of 6,005,404 shares in the company, selling both ordinary shares and global depositary shares (GDS). Two GDS represent an interest in one share. The price of $66.50 per ordinary share corresponds to $33.25 per GDS.
• Stabilisation manager Goldman Sachs International exercised its over-allotment option at the offer price in respect of 1,030,815 GDSs and 373,579 shares.
• The total size of the offering amounted to $799 million excluding the over-allotment option, and to $858 million including the over-allotment option. Of this, $400 million related to the primary component and $458 million related to the secondary component.
• Polyus Gold International is the holding company of the group which includes a 100% stake in SPV Polyus Gold and a majority stake in PJSC Polyus.
• Since the delisting of Polyus Gold International’s shares from the LSE in 2015, Polyus has been the group’s reporting company. Polyus will continue its Moscow Stock Exchange listing alongside its return to the LSE.
• Prior to this transaction, 6.76% of Polyus’s shares were in free float.
• Following the transaction, Polyus is 82.44% owned by Polyus Gold International, with 16.34% of its shares in free float and 1.22% treasury shares. This complies with the free float requirement of the Moscow Stock Exchange.
• A number of Russian companies left the London Stock Exchange following the imposition of sanctions over Ukraine. Polyus Gold International issued $800 million in LSE-listed 5.25% guaranteed notes in February this year but has not maintained an equity listing.
• Russian gold producer Polyus's main assets lie in the Krasnoyarsk, Irkutsk, Magadan and Republic of Sakha (Yakutia) regions of Russia. Since 2007, it has increased its gold production at a compound annual growth rate of 6%, reaching 1,968 thousand ounces in 2016. 
• Goldman Sachs International, JPMorgan, Sberbank CIB and VTB Capital acted as joint global coordinators and joint bookrunners.
• BMO Capital Markets, Gazprombank and Morgan Stanley acted as joint bookrunners.

Jordan Hughes – Journalist