Mail.ru Group plans to raise $600mn on London Stock Exchange

Mail.ru Group plans to raise $600mn on London Stock Exchange
Mail.ru Group plans to raise $600mn on London Stock Exchange
By East-West Digital News in Moscow October 1, 2020

According to an announcement by Mail.ru Group on the London Stock Exchange (LSE), the internet company plans to raise $600mn: $200mn in global depositary receipts (GDRs) to raise capital and $400mn in convertible bonds, reports East-West Digital News (EWDN).

Mail.ru Group will use this money to develop and support the business and finance future transactions, especially in areas that have spurred growth on the back of the coronavirus (COVID-19) pandemic. The holding plans to invest part of the money in O2O, the holding it launched in June last year together with Sberbank and AliExpress Russia with Alibaba Group, the Russian Direct Investment Fund (RDIF) and Megafon.

The convertible bonds will be due in 2025.

The American investment bank Morgan Stanley will act as the co-ordinator and bookrunner of the bond placement.

On September 24, Mail.Ru Group GDRs gained 4% during trading on the LSE, and at its peak, the growth exceeded 8%. A similar dynamic was observed at the Moscow Exchange. 

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This article first appeared in East-West Digital News, a partner of bne IntelliNews

 

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