Английский язык. Практический курс для решения бизнес-задач

WBD’s IPO was…….. Best European Equity Deal of 2002 by EuroWeek and Institutional Investor magazines. Investors striving to gain exposure to the first ever offering of a Russian consumer goods company were not frightened by the information……. in the IPO……… about the criminal past of the company’s biggest shareholder, Gavriil Yushvaev, and about the…….. of other shareholders and directors with Trinity Holding, which Russian media have linked to organized crime. The issue, which was placed in the middle of the…….. price range, was five times oversubscribed. The……. price rose 15.8% on the first day of trading in light of the news that Danone SA bought 4% of WBD through the IPO. Among other investors who bought in WBD were large……… investment funds and investment banks. The substantial interest from U.S. investors in WBD’s IPO was partly due to the fact that Templeton Strategic Emerging Markets Fund…….. a 1.48%…… in the company earlier in 2002.

«We are the first Russian consumer……. company to list on the NYSE. In addition to raising capital to help fund our development, this IPO will enhance our transparency and demonstrate our……. to becoming an international……,» said David Iakobashvili…… of the Board.

Source: PBN Company, Russia’s IPO Pioneers (excerpts), www.pbnсo.com

Terms:

Big Board, stock, prospectus, exposure, governance, Chairman, equity, international, acquired, attracting, capital, announced, player, household, overseas, awarded, involvement, issues, IPOs, conditions, returns, transparency, funds, public, profile, listing, holdings, floated, consumer, demand, goods, commitment, multiples, priced, weighting, oversubscribed, range, traded, opening, closed, offer, analyst, securities, leveraging, disclosed, stake, NYSE, road-show

Exercise 4. You work in the investor relations department of Mechel, and you are to write a brief press-release about Mechel’s IPO using information given below.

Mechel: IPO profile

Mechel’s IPO made it the first Russian company in more than two years to list shares in the U.S. as well as Russia’s first metals firm to list on the NYSE. The offering came amid growing world steel prices, which helped Mechel to place the stock at the top of the expected price range and to raise $291 million. About 20% of the offered ADRs represented existing shares and 80% – new shares. A month later, the lead underwriter of the offering, UBS Limited, exercised its option for an additional 1.5% stake. According to UBS, 90% of the offering was taken by foreign investment funds, mainly from the United States. Mechel planned to use the proceeds to take part in an auction for a 17.8% stake in MMK but later decided not to bid, choosing instead to sell its own stake in MMK to the plant’s current management. It will invest the proceeds into developing its coal capacity as well as modernization of its steel facilities.

Key Data

Date of IPO: October 29, 2004

Stock exchange: NYSE

Underwriters

Lead managers: UBS Limited

Co-managers: JP Morgan, Troika Dialog, Morgan Stanley

Form of offer: ADS (each ADS represents 3 common shares)

Number of securities offered: 13.87 million

By the company: 11.1 million

By existing holders: 2.77 million

Number of securities subject to the over-allotment option: 2.08 million

Percentage of the share capital offered: 11.5%

Price range: $19—$21

Offer price: $21

Total capital raised: $335 million

Use of proceeds: Capital expenditures, including equipment purchases and modernization of facilities; acquisition of additional operations and subsoil licenses.

«There is a big, wide investor base that can’t access the steel sector. These shares are a good way to get access to an under-represented sector and diversify a Russia portfolio» – Anton Khmelnitsky, Brunswick Asset Management.

Mechel: Company profile

Mechel is one of Russia’s leading mining and metals companies. It produces coking coal in Russia, with a 12% market share in 2004. It is Russia’s largest exporter of coking coal concentrate. It is the largest and most comprehensive producer of specialty steels and alloys in Russia, producing 39% of total Russian specialty steel output. In the first quarter of 2005, almost 90% of Mechel’s net income came from mining. The major shareholders of the company are its founders Igor Zyuzin, Chairman of the Board, and Vladimir Iorich, CEO. J.P. Morgan Investment holds 1.62% of the company.

Source: Russia IPO’s Pioneers, www.pbnco.com

Exercise 5. Translate into English.

ОАО «НОВАТЭК»