Russia stem cell firm sees post-IPO market cap at $28mln

MOSCOW, Oct 7 (Reuters) - Russia’s Stem Cell Institute said on Wednesday it plans to raise up to 165 million roubles ($5.53 million) in what will be the country’s first initial public offering since the financial crisis erupted last year.

If the IPO goes ahead as expected, Stem Cell Institute would have an implied market capitalisation of 825 million roubles.

Stem Cell Institute set an indicative price range of the IPO at between 9 and 11 roubles per ordinary share and the offering will comprise approximately 15 million ordinary shares.

The company sees a free float at around 20 percent.

Investors who look beyond Russia’s main stock market and private equity investors remain keen on technology companies which often capitalise on Soviet-era scientific prowess.

The institute, which was founded in 2003, has its own bank of stem cells and develops its own medicines. Cash raised from the IPO will be spent on new projects in Russia and the ex-Soviet Union, and on the development of new products.

The institute expects profits rising 30-40 percent a year and sales at a similar pace. [ID:nLP563803] ($1=29.83 Rouble) (Reporting by Dmitry Sergeyev; Editing by Lincoln Feast)