Russia's O1 Properties investment and development company plans to sell 40-45 percent of its stock in an initial public offering (IPO) in the fall of 2012, Kommersant business daily reported on Wednesday, quoting the company's owner Boris Mints.
"By the the IPO, we'll close all the deals and try to finish most of our construction projects," Mints told the paper, adding that the company intended to use the IPO proceeds to develop its business and buy new projects.
Mints did not say where the IPO would be held.
O1 Properties was established in 2010 and is wholly owned by Mints, who is also a co-owner of Otkritie Financial Corporation. The company has a project portfolio of 420,000 sq m, including six business centers and is worth about $1.35 billion.
"By the fall of 2012, this portfolio may be worth at least $3 billion because the construction projects purchased will be finished," S.A. Ricci partner Vladimir Avdeyev told the paper.
O1 Properties capitalization may equal the value of its current development portfolio during the IPO, Tatiana Bobrovskaya, a senior analyst at Metropol investment brokerage told the paper.
"Mints may get $1.2-1.35 billion for 40-45 percent of the company’s stock," Bobrovskaya said.