Teorema Seeks $500M in London Listing

Teorema Holding, the parent company of the real estate developer Teorema, said Wednesday it planned an IPO of Global Depositary Receipts on the London Stock Exchange.

Market sources had said Teorema, which operates in St. Petersburg, was seeking to raise about $500 million through the IPO before the year's end.

"The offering is intended to assist us in expanding our property portfolio through the acquisition of new sites for future development," Igor Vodopianov, a management team member, said.

The company did not say when it would launch the offering of GDRs, representing its ordinary shares. A source close to the offering told Reuters that Teorema would begin a road show on Nov. 26 and close the book on Dec. 6.

Teorema picked ING Bank, London Branch, Merrill Lynch International and Renaissance Securities as joint global coordinators and joint bookrunners. It gave no other details.

It said its property portfolio was valued in September at around $1.41 billion by the Russian arm of the world's largest private real estate firm, Cushman & Wakefield Stiles & Riabokobylko.

Teorema plans to develop about 3.48 million square meters of commercial and residential property, of which it aims to complete 168,000 square meters by the end of 2008. It has completed 92,000 square meters of commercial space, including three business centers and a warehouse terminal. It is currently focused on developing five sites in St. Petersburg totaling about 383 hectares.