Russia's Global Ports Plans London IPO

Russia's Global Ports Plans London IPO

Global Ports, Russia’s largest container terminal operator, plans to raise about $100 million for an initial public offering on the London Stock Exchange.

The privately owned company, which handles 30 percent of Russia’s container traffic at its Baltic and Pacific terminals, said it will use the proceeds to fund capital investment in the Russian port sector.

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Global Ports plans to sell 25 percent of its shares in the form of global depositary receipts.

Deutsche Bank, Goldman Sachs International, Morgan Stanley and Russia’s Troika Dialog are joint global co-coordinators and book runners of the offering.

“We hold [the] number one position in Russian container handling and fuel oil exports and have strong capacity to accommodate expected market growth as well as the potential to expand our current terminal facilities,” said Nikita Mishin, Chairman of Global Ports’ Board of Directors.

Global Ports is 90 percent owned by N-Trans, the majority shareholder in Global Trans Investment, Russia’s largest private rail freight operator that floated on the London stock exchange in 2008.

Global Ports operates two terminals in St. Petersburg and one in the far eastern port of Vostochny, as well as facilities in Helsinki and Kotka in Finland.

Dubai’s DP World has a 25 percent stake in the Vostochny, which it inherited in the takeover of the UK’s P&O Ports.

Global Ports also operates oil products terminals, which handle about 28 percent of Russia’s fuel oil exports.

The company increased first quarter 2011 revenues by 60.8 percent year-over-year to $122.9 million and adjusted operating profit grew more than 100 percent to $67.3 million.

First quarter container traffic surged 68 percent in the quarter to 341,222 20-foot equivalent units.

Russia is one of the world’s fastest growing container markets, according to London-based Drewry Shipping Consultants, which forecasts compound annual growth rate of 18.8 percent in 2010-2013.

-- Contact Bruce Barnard at brucebarnard47@hotmail.com.