Russia’s Renaissance Insurance Will Reduce IPO Size

October 20, 2021 by Alexander Marrow

Russia’s Renaissance Insurance Group will reduce the size of its IPO to $250 million from an initial $290 million, two sources told Reuters on Wednesday, selling only new shares plus an over-allotment option.

The group has covered its IPO book at the lower end of the indicative price range, which had been set 120 to 135 roubles ($1.69-1.90) per share, a financial market source and a person familiar with the company’s plans said.

The group said last month that it planned to list its shares on the Moscow Exchange and raise up to $290 million.

It then said the offering size was expected to total up to 25.2 billion roubles ($355 million) when setting the indicative price range this month.

Pricing at the lower end of the range would imply a market capitalization of around 67.2 billion roubles, in line with the initial plan that a person familiar with the matter shared with Reuters in September.

Renaissance Insurance Group is one of a number of Russian companies that have decided to list shares as Russia’s IPO activity has picked up pace recently after being hit by the pandemic last year.

($1 = 71.0350 roubles) (Reporting by Olga Popova; writing by Alexander Marrow; editing by Katya Golubkova and Jason Neely)