Valinor Public Limited, one of the largest agricultural companies in the Commonwealth of Independent States (CIS), is considering conducting an approximately US$200-300 mn Initial Public Offering of its shares on the Warsaw Stock Exchange, the company has said in a communique.

"We are proud to be the first Company with primarily Russian operations to pursue a listing in Warsaw. The Warsaw Stock Exchange has already proved itself as the right platform for successful IPOs from the CIS region, in particular for agricultural companies. After almost 15 years of development, Valinor is one of the largest agri-businesses in the CIS in terms of cultivated land area and harvested crops and is currently in a position to share its success with investors, whilst benefiting from access to the capital markets", said Chairman of the Board of Valinor Kirill Podolsky quoted in communique.

Valinor controls approximately 358,000 hectares of land in the highly fertile "black earth" regions of the Russian Federation and Ukraine, focuses on the cultivation of cereals and oilseeds and reached total crop production of around 1.2 million tonnes in 2010. 

Company said that the offering will consist of newly issued shares and existing shares sold by Valars Management Limited, the controlling shareholder of the Company, in approximately equal proportions. The Company intends to useprimary proceeds from the Offering to fund its growth strategy of land bank expansion, production intensification and improving the efficiency of its operations. The Offering will include a global institutional offering outside of the United States in accordance with Regulation S and a retailoffering in Poland.

Deutsche Bank and Troika Dialog act as Joint Global Coordinators and Joint Bookrunners of the Offering. BZ WBK Brokerage acts as Domestic Lead Manager and Offering Broker. InvestoHills Capital acts as Financial Advisor to the Shareholders of the Company.

Valinor's Offering and listing on the Warsaw Stock Exchange are both subject to market conditions, as well as receipt of all necessary regulatory approvals, including the relevant approval of the prospectus by the Cyprus Securities and Exchange Commission and notificationof the approval to the Polish Financial Supervision Authority, the publication of the prospectus and summary of the prospectus in Polish, registration of the shares with the Polish National Depository for Securities, and admission and introduction to trading of Valinor's shares on the main market of the Warsaw Stock Exchange. The Offering will be made in accordance with Regulation S and applicable securities regulations in Poland and Cyprus.

In 2010, the Group's revenue was USD 224.4 million (+35.9% y/y) and adjusted EBITDA1 USD 111.5 million (+241.2% y/y). The adjusted EBITDA margin, calculated as adjusted EBITDA1divided by revenue, was 49.7% in 2010 (19.8% in 2009).

Gowarsaw