Russian internet company Mail.ru announced pricing for its upcoming initial public offering of shares on the London Stock Exchange. The company set a price range of USD 23.70-27.70 per GDR, implying an equity value for the group of USD 4.78-5.63 billion prior to the IPO and USD 4.86-5.71 billion after the issue of new shares. Trading under the ticker MAIL, each GDR will represent an interest in one ordinary share of the company. The offering includes 3.03 million new shares in the form of GDRs and a sale of 28.59 million shares by existing shareholders. This will represent a free float of 16 percent. The net proceeds will be used to by an additional 7.5 percent stake in Russian social network vKontakte for USD 112.5 million; this will take Mail.ru's stake to 32.49 percent. The company is also purchasing an option to acquire an additional 7.5 percent equity stake in vKontakte over the next year. The company and the selling shareholders will grant the bookrunners an over-allotment option to acquire up to 3.16 million additional ordinary shares.
