DIOD Company places 10% of its shares in the MICEX Market for Innovations and Investments
June 23, 2010
On 23 June, DIOD Company, specializing in ecological equipment and ecological food, made its IPO in the MICEX Market for Innovations and Investments.
In the course of the IPO, investors bought 9.15 million common shares in DIOD, which makes up 10% of the Company’s current authorized capital. The offering price was set at 32.5 rubles per share. Thus, DIOD’s capitalization amounted to 2.97 billion rubles, and the volume of placement reached 297.38 million rubles.
Demand exceeded supply by 30%. The organizer of the IPO was Finam Investment Company and the co-organizer (seller) was Otkrytie Brokerage House.
Brief information:
DIOD is one of Russia’s leading manufacturers of products helping to preserve health. The company produces non-drug products (6% of the Russian market, according to the data of DSM Group retail audit agency for 2009), such as Kapilar, Viardot, Iod-Active, Phase 2 and others, active cosmetics (3.4% of Russian market), medical equipment and pharmaceuticals (Gipoksen, Mebiks, Orvirem). DIOD has its own retail network Ecology World. DIOD is the world’s largest producer of dihydroquercetin (according to the “Dihydroquercetin (taxifolin). Market Review” of Cherkasky NIITEKHIM, 2009), which the Company intends to export to the USA, Europe and Southeast Asia. In 2009 the audited revenue of DIOD amounted to 1.559 billion rubles and its EBITDA reached 332 million rubles. DIOD’s net profit for 2009, under IFRS, increased by 20% to 364 million rubles.
The Market for Innovations and Investments (MII) is a project to create an exchange for hi-tech companies, implemented by the MICEX jointly with RUSNANO Corporation. The market includes three main segments intended for companies with different degrees of maturity and sizes of capitalization, as well as different groups of investors:
1. IGC Sector: enables innovation companies to make public offerings (IPO/SPO) and admit securities to secondary trading in all modes of trading on the MICEX SH.
2. IGC-2: a mode for conducting private placements using exchange technologies and listing. Secondary trading is held for qualified investors in the framework of trading technologies designed for trading in large blocks (negotiated deals).
3. MICEX-board: a mode helping innovation companies to attract investments at early stages of their development.