* Company expected to raise around $500mln-sources
* IPO will follow rival Globatrans which went public in 2008
* Roadshow to start Jan 28-source
By Megan Davies and Olga Popova
MOSCOW, Jan 15 NefteTransService, one of
Russia's biggest private freight rail operators, hopes to raise
around $500 million via a London listing, sources said, that it
will then use to expand into Ukraine and Kazakhstan as the
markets open up to competition.
Two sources with knowledge of the placement said the company
expected to offer around 25 percent of its shares. The company
confirmed its intention to float but did not disclose the amount
it aims to raise.
The IPO will follow rival Globaltrans, which went
public in 2008 and raised $450 million last year in a share sale
in order to give it added firepower for acquisitions.
Kazakhstan and Ukraine, as well as having significant
cross-border cargo flows with Russia, have similar
infrastructure and regulation and are also undergoing rail
A decade ago, Russian cargo owners relied on state-owned
monopoly Russian Railways as the main fleet operator, but now
more than 70 percent of the country's freight fleet is privately
owned, according to a 2012 presentation by Globaltrans.
NefteTransService's offer is expected to be completed in the
first half of 2013, the company said. A roadshow for investors
is to start on Jan. 28, one source said.
Europe's IPO market, which has been struggling amid the
region's debt crisis and sluggish economic growth, started to
show signs of life again in the final months of 2012 as investor
confidence improved. Russia's second-biggest mobile phone
operator MegaFon raised $1.7 billion in its
November listing and is now trading more than 25 percent above
the price at which it floated.
While the IPO market's recovery remains fragile, the lack of
activity through much of last year has left a backlog of deals
which could come to market in 2013, bankers have said.
This month has already seen German residential property
group LEG and Polish real estate holding firm PHN unveil plans
to list. [ID: nL5E9C70OO] [ID: nL6N0AJ2SX]
NefteTransService plans to expand its fleet through making
acquisitions and is looking for opportunities to buy the rail
transportation units of large Russian industrial groups and
other rail freight operators.
In November it won an auction to buy rail operator
Evraztrans from steelmaker Evraz.
Other recent deals in Russia's rail freight market include
investment and trading group Summa buying transport group Fesco
and steel magnate Vladimir Lisin agreeing to buy rail
cargo operator Freight One.
NefteTransService was founded in 2006 by Vadim and
Vyacheslav Aminov. Last year, the company was the country's
largest private railway operator, measured by the amount of
cargo transported in Russia.
It handled 71.1 million tonnes of cargo - more than the 9.6
million tonnes transported by Russian freight operator
Globaltrans Investment, which raised over $500 million
in a share sale in July.
NefteTransService cites Anglo-Russian crude producer TNK-BP
, coal miner SUEK and steel producer Mechel
among its key customers.
JP Morgan, Morgan Stanley and Renaissance
Capital are acting as joint global coordinators and joint
bookrunners for the offering.