UPDATE 1-Russian developer Samolet eyes Moscow IPO

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Oct 15 (Reuters) - Russia’s Samolet Group plans an initial public offering (IPO) on the Moscow Exchange in the fourth quarter, the real estate developer said on Thursday.

The company’s shareholders will sell about 5.1% of its shares, Samolet said.

Its free float is expected to reach about 5%, though it plans to increase it to 30-40% over the medium term, it said.

Samolet, whose land bank stands at over 15 million square metres worth 176.9 billion roubles ($2.28 billion), said it plans to use the proceeds from the IPO to buy land and to finance construction of current projects.

Samolet’s share sale would mark a second IPO in Moscow this year, after shipping giant Sovcomflot raised about $550 million this month, in a sign that deals in Russia are returning following a three-year drought.

The company’s real estate sales rose 21% to 41 billion roubles in the first nine months of the year.

$1 = 77.7020 roubles Reporting by Anna Pruchnicka; editing by Jason Neely