Reuters reported that on Monday, Russia’s ALROSA (MCX:ALNU) started to market a share sale that values the company at as much as $8.7 billion, down from an earlier estimate. A final price is set to be announced on October 28.
As quoted in the market news:
Alrosa set the price range for the sale on the Moscow stock market at between 35 roubles and 38 roubles per share, just above the price a small proportion of its shares currently trade at.
The range values the group, the world’s largest diamond miner by volume, at between $8.0 and $8.7 billion.
That is well below a $9 to $15 billion estimate the company gave in May. Earlier this month, a banking source and a source familiar with the deal said Alrosa was targeting a value of more than $10 billion.
It was not immediately clear why the price range was lower than the company’s earlier estimate. Analysts and industry sources suggested that Alrosa brought the price closer in line with shares already trading to ensure the sale was a success.
Click here to read the full Reuters report.