Russian Railways will increase its share capital by RUB 41.5bn (approx. USD 1.51bn) by placing an additional share issue, the company said in a statement according to RBC. The respective decision was made by the Russian government, the transportation monopoly's only shareholder. The company plans to float 41.5m additional common shares with a par value of RUB 1,000 (approx. USD 36.34) and an offering price equal to the par value. The shares are to be placed by private subscription in favor of the government.
According to the company's statement, the decision to increase the share capital was approved by its board of directors on Tuesday. Earlier, Russian Railways President Vladimir Yakunin announced that the funds raised from the issue were to be spent on implementing infrastructure projects in Sochi.