A new round of US sanctions may force Russian companies to postpone public offerings. The May issue of the SPO for the agricultural holding Cherkizovo on the Moscow stock exchange and the IPO of the HeadHunter recruitment service, which was to be held in New York, was in question. Investors are deterred by the unpredictability of the geopolitical situation and the inability to predict which companies will fall under new sanctions.
Cherkizovo may postpone the SPO on the Moscow stock exchange, which was planned to be held in May, at least until autumn, two sources told Kommersant in investment circles. According to them, a possible delay is associated with the next package of anti-Russian sanctions announced by the US Treasury on April 6 in response to "a variety of malicious activities of the Russian Federation," which caused the sale of assets in the Russian financial market. As a result of trades on April 9, the RF stock indices collapsed by 8-11%, the Moscow Stock Exchange index returned to the level of early 2018 (2,090.88 points), the RTS index renewed at least seven months (1094.98 points). After the announcement of US sanctions, Cherkizovo postponed the board meeting twice, at which the SPO issue was to be considered. Initially, the meeting was to be held on April 13, but then was postponed to April 17, and now - on April 26. In "Cherkizovo" from the comments abstained.
Cherkizovo announced plans to hold an SPO on April 3. Part of the package in 82.52% of investors planned to offer MB Capital Europe Ltd the family of the founder of the group Igor Babaev. Another 6.63% of shares will be sold by Cherkizovo itself. In total during SPO the company could attract about $ 300 million. Joint global coordinators and bookrunners of the transaction are Goldman Sachs, J.P. Morgan and Sberbank CIB.
In the Savings Bank refused to comment, the rest of the organizers did not respond to requests from Kommersant.
Sergei Mikhailov, CEO Cherkizovo, in an interview with Vedomosti in March 2016, Sergei Mikhailov, CEO Cherkizovo, in an interview with Vedomosti in March 2016
Revaluation of the company can occur when investors see that Russia has begun to export real volumes of meat
According to one of the investment bankers, about 70% of the shares that Cherkizovo intended to place during the SPO were to be offered to non-residents. But foreign investors have been scared off by new anti-Russian sanctions, he says. Although the sanctions did not affect the business of Cherkizovo, and the devaluation of the ruble is positive for profitability, therefore, for the investment attractiveness of the company, the global sale of Russian stock assets could not but affect the mood of portfolio managers in relation to the group's shares, argues senior analyst of BCS Global Markets Marat Ibragimov .
As the investment banker notes, the financial situation of Cherkizovo does not hurry with the SPO. In 2017, according to reports, the group's revenue increased by 10%, to 90.5 billion rubles, net profit by 202%, to 5.8 billion rubles, EBITDA - by 48.5%, to 15.3 billion rub. Net debt "Cherkizovo" at the end of 2017 - 48.66 billion rubles., Which corresponds to almost 3.2 EBITDA (15.33 billion rubles.). The debt load is high, but there is no reason for panic, said Georgy Vaschenko, the head of operations at the Russian stock market of the IR Fridom Finance. In his opinion, if necessary, Cherkizovo will be able to refinance loans. Two sources of Kommersant, close to the organizers SPO Cherkizovo, emphasize that the final decision to postpone the placement has not yet been made.
The expansion of US sanctions may affect not only Cherkizovo's plans in the capital markets. According to the source of "Kommersant" in investment circles, the IPO of the Russian service for finding the work of HeadHunter was also questionable. April 2, it became known that the company filed an application for an initial public offering in New York on the NASDAQ, hoping to attract $ 250 million representative HeadHunter declined to comment.