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. Last Updated: 07/27/2016

LSR Aims to Raise $1Bln in Listing

LSR Group, a property developer and building-materials maker, and shareholders aim to raise as much as $1.05 billion in an initial share sale to help pay for real estate purchases and improvements to its plants, the company said Friday in a statement.

LSR is offering shares for $65 to $82.50 each in Russia and London, the company said. LSR plans to list Global Depositary Receipts, each of which is one-fifth of a share, in London.

After the offering, LSR plans to sell as much as $702 million of new ordinary shares to one of its current owners. LSR will use the money raised to buy property, upgrade factories and build new brick, cement and aerated-concrete production lines.

The final price and number of shares for sale will be set by Nov. 8, LSR said. LSR has also granted a possible over-allotment option for ABN Amro Rothschild, Credit Suisse Group and Deutsche Bank, according to the statement.

Investment in commercial property may rise as much as 40 percent this year, real estate broker Jones Lang LaSalle said Oct. 16. The government alone has pledged 980 billion rubles ($40 billion) for housing by 2010.