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. Last Updated: 07/27/2016

Drilling Firm Valued At $3.5Bln

Oil-field services firm Eurasia Drilling priced its initial public offering near the middle of the pricing range amid heavy subscription, valuing it at $3.5 billion, the company said Friday..

The issue was priced at $23.50 per share, slightly below the middle of the indicated range of $20.80 to $27.20 per share. The book on the offering was three times oversubscribed.

A source close to the offering said Friday that the company's shareholders had sold a total of 10 percent of Eurasia's share capital before the offering.

He added that the shareholders received less than $300 million through the sale of the existing shares and raised $450 million for the newly issued shares.

With the exercise of an overallotment option, the total amount raised could reach $820 million.

"Practically all of the shareholders of Eurasia sold a small amount of their shares," the source said, adding that the president of the company, Alexander Dzhaparidze, sold the least of all.

Eurasia was not immediately available for comment Friday.

The failure to price the IPO at the upper end of the price range, despite high demand, was because of selective allocation of the shares, the manager of a Western hedge fund said.

"It seems the company allocated the shares very carefully and a good many of the clients didn't get anything," the fund manager said. "More than likely, the price was kept moderate in order to create upside, and that's nice."