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. Last Updated: 07/27/2016

Integra Seeks High IPO Value

Oil-services firm Integra said Monday that it was seeking a value of between $1.5 billion and $1.9 billion when it floats its shares in London this month and sources close to the deal said the offer was already oversubscribed.

The fast-growing firm, set up less than three years ago, said it needed the money to fund expansion and challenge giants such as Halliburton as the Russian oil-services business grows alongside oil and gas production.

Integra will become Russia's first public oil services firm and its possible post-IPO value of around $2 billion will be within the average of 20 global peers although just a fraction of the $76 billion of the world's leader, Schlumberger.

"I think Integra's portfolio of orders is set to grow but it will come into tough competition with the service units of Russian oil majors and Western oil services giants," said Maxim Shein, an analyst at BrokerCreditService.

"A lot will depend on Integra's ability to cooperate with state-owned companies as they plan new developments in east Siberia," said Shein, who added that he considered the valuation generous given Integra's sales of around $500 million last year.

The company said in a statement that it had set the price range from $275 to $335 per share, or from $13.75 to $16.75 per Global Depositary Receipt, for the placing of up to 25 percent of its stock on the London Stock Exchange.

The IPO's bookrunners, Morgan Stanley and Renaissance Capital, can exercise an over-allotment option in 30 days for some 5,454,540 additional global depositary receipts, representing some 15 percent of the base offering size.