MOSCOW, April 13 (Reuters) - Russian forestry group Segezha was valued by some of investment banks which are arranging its initial public offering (IPO) at between 125 billion roubles to 333 billion roubles ($1.6 billion to $4.4 billion), four financial market sources told Reuters on Tuesday.
Segezha, controlled by conglomerate Sistema, announced IPO plans this week, aiming to raise at least 30 billion roubles from newly issued shares, excluding an over-allotment option of secondary shares.
UBS, JPMorgan, Bank of America, VTB Capital, Gazprombank and Renaissance Capital are arranging the deal. VTB Capital has valued Segezha at between 130 billion and 160 billion roubles on the pre-money basis, or before IPO, according to the sources.
Another arranger, Gazprombank, has put the company’s equity value at 125 billion to 205 billion roubles on the same pre-money basis, sources said.
Renaissance Capital sees Segezha’s valuation post-money, or after it raises cash in the IPO, at between 160 billion and 333 billion roubles, sources said. Bank of America has put the same valuation at $1.6 billion to $2.7 billion, they added.
VTB Capital, Gazprombank, Bank of America and Segezha itself declined comments. Renaissance Capital did not reply to a Reuters request for a comment.
A roadshow is scheduled to begin on April 19, with pricing on April 26, two financial market sources have said. Sistema will remain Segezha’s majority shareholder, according to Segezha.
Segezha cuts and processes timber to produce paper and other goods sold in 100 countries worldwide, according to the company website. ($1 = 76.1396 roubles)
Reporting by Olga Popova Additional reporting by Tatiana Voronova Writing by Katya Golubkova; Editing by Lisa Shumaker