London – PIK.MM. PIK Shares Drop 10%. Reports that a minority shareholder had sold 2.15% of the company overnight sent shares in PIK, Russia’s largest real estate developer, down over 10%. There has been a higher than usual volume of transactions in PIK shares also.
Shares opened 9.7% lower in the morning session and dropped to as low as Rub341.70 at the time of writing.
PIK Shares Drop 10%.
The chart can be found at Investing.com.
Investment bankers sold the block of shares on Wednesday night. Both VTB Capital and JP Morgan played the role of global coordinators with Gazprombank acting as a bookrunner on the Rub4.9bn (€68.7m) transaction.
The deal involved the sale of 14.2m shares sold by Firlibia Holdings, an investment vehicle controlled by Mark Rhodes.
The sale of the PIK block of shares was priced at Rub345 a share. This is a 10.4% discount to yesterday’s close of R385 a share. Investors buying the shares demanded a better price, achieving a 10% discount. Discounts are sometimes requested when selling large blocks of shares in one go.
A person close to the deal added that there were international accounts in the highly concentrated book. The top 10 accounts took around 80% of the shares on offer.
The PIK transaction was the latest in a resurgent year for Russian equity capital markets.
Russian stockmarket issuance volume has increased in recent months. According to Dealogic, volume has increased 335.4% year-to-date. This follows the market being effectively shuttered following April 2018, when US sanctions were imposed on several Russian business participants.
Also, Kazakhstan has recently seen two sizeable block trades in uranium producer Kazatomprom and Halyk Bank.
PIK is the largest Russian property developer and has been operating since 1994. The business has projects in ten regions of Russia with a focus on Moscow and the Moscow Region.
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Danny Deegan is the Editor and proprietor of eurasianmarket.com. Born in the UK, currently working in financial services with an emphasis on equity investments and forex trading.