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. Last Updated: 07/27/2016

Pharmstandard Seeks $2.2Bln Valuation in London Offering

Drugs maker Pharmstandard said Monday that it was seeking a valuation from $1.75 billion to $2.2 billion at its upcoming London initial public offering, the first by a Russian pharmaceuticals company.

The company said investors were given an indicative price range of $11.55 to $14.55 per global depository receipt and $46.20 to $58.20 per share.

The bookbuilding and international roadshow for investors start Monday, and final pricing should be set by May 4.

Citibank and UBS are joint global coordinators for the IPO and have an over-allotment option to purchase GDRs representing up to 15 percent of the total number on offer.

Pharmstandard, which has a small listing on the RTS index, plans to float a stake of up to 40 percent in London and Moscow.

The company says it was the fourth-largest drug company operating in the country by sales volume last year. An independent researcher said it had grabbed the lead in the commercial sector of the market early this year.

Some analysts have found the company's mid-range valuation of around $2 billion ambitious. The absence of listed rivals also makes it hard to estimate how the market values the company.

The float follows Pharmstandard's acquisition last year of Masterlek and with it a product portfolio including antiviral drug Arbidol, the market leader in Russia ahead of Pfizer's Viagra anti-impotence treatment.

Russian commercial drug sales rose by 22 percent in 2006 to $5.2 billion, according to market researchers Pharmexpert, which said Pharmstandard had taken first place in the first two months of this year from Sanofi-Aventis.

The float would be of existing shares belonging to the company's owners Viktor Kharitonin, Yegor Kulkov and Millhouse Capital, the investment vehicle of Roman Abramovich, which owns a 31 percent stake.