Sovcomflot announces IPO plans

AK&M 16 September 2020 10:44

PAO Sovcomflot has announced plans to conduct an IPO and to apply for listing on the Moscow Exchange, the company informed.

Net proceeds from the IPO are expected to reach at least $500 million. The company is currently fully owned by the Government of Russia. The Russian Federation is expected to retain its majority shareholding upon completion of the IPO.

The company intends to use the proceeds from the offering of shares for general corporate needs, including investments in new industrial projects, decarbonization and further deleveraging.

VTB Capital, Citigroup Global Markets Limited, Sberbank CIB, J.P. Morgan and BofA Securities are the joint global coordinators and joint bookrunners for the intended offering.

Sovcomflot is Russia's biggest shipping company, one of the global leaders engaged in the marine transportation of hydrocarbons and providing maintenance services for off-shore oil and gas upstream projects. SCF Group's fleet comprises 146 owned and chartered vessels with a total deadweight of 12.6 million tonnes, more than 80 of them being ice-class vessels.

Sovcomflot provides support to large offshore energy projects, such as: Sakhalin-I, Sakhalin-II, Varandey, Prirazlomnoye, Yamal LNG, Tangguh (Indonesia). The company headquartered in St. Petersburg has representative offices in Moscow, Novorossiysk, Murmansk, Vladivostok, London, Limassol, and Dubai.

IFRS net profit of Sovcomflot for 2019 was $225.4 million against a loss of $45.6 million a year earlier. Revenue increased by 9.6% to $1.665 billion from $1.52 billion, EBITDA by 41.7% to $823 million from $580.7 million.