OJSC TransContainer, a subsidiary of Russian Railways (RZD) (RTS: RZHD), will offer 14%-19% of its shares in a secondary listing on the London Stock Exchange (LSE) in 2009, Fyodor Andreyev, an RZD senior vice president, told reporters in Sochi according to Interfax.
Andreyev said TransContainer would float 15%-20% of its shares in an IPO in Russia in October-November 2008.
TransContainer plans to sell 49% of its shares overall. It has already sold 15% in a private offering at the end of last year.
"15%-20% will be placed in the fall, as planned, and the rest in London in 2009," he said.
Andreyev said RZD expected that the TransContainer IPO would raise significantly more than the private placement at the end of last year, which he said valued the subsidiary at $2.2 billion.
"We think TransContainer could be worth $3 billion-$3.5 billion by the time of the IPO," he said.
TransContainer was spun off from the monopoly in the framework of railway sector reforms. RZD sold 15% of OJSC TransContainer in the private placement to the European Bank for Reconstruction and Development (EBRD), Moore Capital Management, GLG Emerging Markets Fund and Troika Dialog Investments for 7.8 billion rubles.