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. Last Updated: 07/27/2016

Chagala Raises $104M in London IPO

Chagala Group, a Kazakhstan real estate company, raised $104 million in an IPO in London to expand in the country.

Chagala sold 10.7 million global depository receipts at $9.75 each, the maximum price in a range that bankers used to market the sale, the firm said Wednesday.

Chagala may increase the offer by $16 million. The shares rose $1.25, or 13 percent, to $11 on their first day of trading in London.

"The offer price reflects the positive response of investors to the flotation of Chagala," CEO Tim Abson said in the statement. "Chagala is well-positioned to benefit from the projected growth of the real estate market in west Kazakhstan."

As well as funding construction costs and growing Chagala's land bank, about $20 million raised in the IPO will be used to repay bank loans and repay shareholders who sold their stakes.