May 16, 2012

Georgian Railway IPO price range announced

Written by 
  • Print
  • Email

THE JSC Partnership Fund overseeing the IPO of Georgian Railway (GR) has announced the price range of shares that will be available for sale in the form of Global Depositary Receipts (GDRs) on the London Stock Exchange from May 24.

The IPO price range is set at $US 15.25 - $US 19 per GDR, with each GDR representing 20 shares in GR. Up to 13,121,890 GDRs will be available which are worth up to 25% of GR's authorised share capital. On the basis of this price range the offering is valued at least at $US 200m - $US 250m.

GR is the monopoly rail operator in Georgia and last year generated revenues of Lari 477.4m ($US 285.8m) and Ebitda of Lari 259.9m. GR claims that its Ebitda margin of 54.4% is one of the highest in the global railway industry. The railway is currently implementing a $US 420m modernisation project, which is due to be completed by 2016, and will increase intermodal operations, raise the proportion of revenue from high-value dry cargo and expand the network to offer new transit routes including the new Baku - Tbilisi - Kars railway.

"GR is uniquely positioned with its combination of statutory monopoly and deregulated tariff-setting and its track record of profitable growth," says Mr Irakli Ezugbaia, GR CEO. "We look forward to meeting prospective investors and sharing with them our plans to capture the considerable further growth and development opportunities we see for our business in the region."

THE JSC Partnership Fund overseeing the IPO of Georgian Railway (GR) has announced the price range of shares that will be available for sale in the form of Global Depositary Receipts (GDRs) on the London Stock Exchange from May 24.

The IPO price range is set at $US 15.25 - $US 19 per GDR, with each GDR representing 20 shares in GR. Up to 13,121,890 GDRs will be available which are worth up to 25% of GR’s authorised share capital. On the basis of this price range the offering is valued at least at $US 200m - $US 250m.

GR is the monopoly rail operator in Georgia and last year generated revenues of Lari 477.4m ($US 285.8m) and Ebitda of Lari 259.9m. GR claims that its Ebitda margin of 54.4% is one of the highest in the global railway industry. The railway is currently implementing a $US 420m modernisation project, which is due to be completed by 2016, and will increase intermodal operations, raise the proportion of revenue from high-value dry cargo and expand the network to offer new transit routes including the new Baku - Tbilisi - Kars railway.

“GR is uniquely positioned with its combination of statutory monopoly and deregulated tariff-setting and its track record of profitable growth,” says Mr Irakli Ezugbaia, GR CEO. “We look forward to meeting prospective investors and sharing with them our plans to capture the considerable further growth and development opportunities we see for our business in the region.”

Get the latest rail news

IRJ Rail Brief newsletter covers global railway news