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Russian restaurant chain to raise $125 mln from IPO

Rosinter Restaurants Holding, a leading restaurant operator in Russia and other former Soviet republics, intends to raise about $125 million from an initial public offering (IPO), the company's press office said Monday.

The price range for the global share offering has been set at $31-$43 per share, with 4.1 million shares representing about 40% of the company's charter capital to be offered to investors in Russia, and also to international institutional investors outside the United States, Rosinter said in a statement. Rosinter, which owns such popular brands as IL Patio (Italian cuisine), Planet Sushi (Japanese cuisine) and 1-2-3 Cafe (Russian cuisine), said the company would offer the shares of its sole shareholder, RIG Restaurant Limited.

The shareholder intends to use at least 50% of the IPO proceeds to repurchase a $62.5 million additional share issue to be arranged after the global offering. The other funds will go to expand and develop Rosinter's business, and to strengthen its core brands and franchising system, the statement said.

Rosinter, which also operates restaurants in the Czech Republic and Hungary, is expected to have a market capitalization of $372.5-$492.5 million after the IPO and the new share issue. Rosinter, which was established in 1990, has a charter capital of 1.697 billion rubles ($66 million) divided into 10 million shares with a par value of 169.7 rubles ($6.60) each. Rosinter serviced about 12.5 million clients last year and its consolidated earnings calculated to International Financial Reporting Standards (IFRS) increased 31.9%, year-on-year, in 2006 to $218.6 million. At the same time, the company declined to specify the timeframe of its IPO just yet. (rian.ru)