Russian juice, dairy and foods company Wimm-Bill-Dann will make its New York Stock Exchange (NYSE) debut later this week, with the offer of between US$150m and US$230m in American Depositary Receipts (ADRs).
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Due on Friday, the offer, which makes up about 30% of the company, has initially been well received although Wimm-Bill-Dann shares are not expected to increase dramatically. The company has already sold a 1.48% share to the Franklin Templeton funds group.
Other Russian companies will be watching the debut with interest. After a sharp increase in Russian stocks last year, the Wimm-Bill-Dann offer could prove just the first in a number of similar deals as similarly focused Russian companies bid to capitalise on the US investors’ market.
The Russian ADRs are currently dominated by telecommunications and energy companies, and have climbed nearly 5% in the year-to-date. According to the Bank of New York, only four out of a potential 55 Russian companies with ADR capabilities, have NYSE listings.
James Fenkner, economic strategist at Russian securities firm Troika Dialog, told the Financial Times: “The situation is [that] there’s not a great pool of money within Russia […] If the company is set up and has the accounting and the legal structure of a western company, it’s easier to list in the US.”
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By GlobalData“This will primarily be a year for fixed income issuance [because] you have yields falling and risk perceptions falling [but] you’ll probably find by 2003, a number of companies [looking at] US listings.”
