PIK Group, Russia’s largest homebuilder, will delist from the London Stock Exchange and consolidate its domestic flotation, in the latest of a list of Russian corporates to head home encouraged by Kremlin after an unsatisfactory time on the London bourse.
PIK joins gold miners Polyus and Nordgold and potash producer Uralkali in abandoning secondary listings in London over the past 18 months citing low liquidity or market capitalisations below expectations.
The trend also follows Russia’s government’s call for corporates to return home following western sanctions imposed on the country in response to Moscow’s invasion and annexation of Ukraine’s Crimea.
Following the delisting, the company is also considering various ways to further increase its free-float in Moscow, potentially including an SPO, according to a person familiar with the company’s strategy.
“The new capital markets strategy and concentration of trading on Moscow Exchange will help to boost liquidity and enhance the efficiency of our investor relations programme,” said Sergei Gordeev, PIK president.
“Following a series of successful acquisitions and approval of our Strategy, PIK is set to unlock its fair value by accelerating earnings growth, optimising costs and delivering synergies.”
PIK said it would run a tender process offering a 3 per cent premium on Friday’s close price to holders of its London-listed GDRs, who can also convert their stock into ordinary shares listed on the Moscow Exchange.
Moscow-focused PIK expects to achieve an annual doubling of sales in 2017 to 1.7–1.9 million sqm, and total cash collection of 190-200bn roubles.