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. Last Updated: 07/27/2016

Razgulyai Plans New Share Issue

Large agribusiness company Razgulyai is planning a secondary public share offering and expects revenues to rise in the second half of 2007 as it exports grain held back in anticipation of higher prices.

Razgulyai, which last year became the first large Russian agricultural firm to float shares, said Thursday that it planned to ship most of this season's wheat before mid-January to avoid the threat of high export duties on the grain.

"We definitely expect an increase in revenues in the second half of the year," Razgulyai president Igor Potapenko said during a conference call after the firm announced first-half results.

The company said January-June revenues rose 8 percent year-on-year to 8.5 billion rubles ($340 million), due mainly to higher sugar sales. Grain sales declined in the same period.

Razgulyai will soon issue additional shares equivalent to 11 percent of its stock through an open subscription, with current shareholders having a pre-emptive right. Proceeds will be used to fund plant upgrades, refinance debt and acquire new assets.

Potapenko said Razgulyai had exported 600,000 tons of grain since the start of the marketing year on July 1. It aims to ship over 1 million tons more, mostly wheat, by the season's end.

Alexei Ivanov, head of Razgulyai's grains division, said the firm planned to export all its barley before a 30 percent tariff becomes effective on Nov. 12.

The government has discussed setting a prohibitive wheat export duty to keep the cereal inside the country during the sale of state stocks, aimed at stabilizing rising prices and curbing inflation. The plan has been postponed indefinitely.