Updated April 30, 2008

   As it became known, the chemical holding Acron intends to hold IPO at the London Stock Exchange (LSE) in July. According to the results of 20% stocks’ offering it is expected to attract around $900 million. It corresponds the current company capitalization at the Russian trading floors. Experts are sure that despite the nontraditional for the offering at a stock exchange time of the year, Acron stocks will be of high priority among the investors as the holding capitalization has upped more than twice within the last half-year.

   Acron plans to hold the stocks offering in July, as told some investment bankers. "The offering takes place at the London Stock Exchange", as explains the investment sector head of one large bank. According to another banker, it is assumed to offer up to 20% from the book value and to attract around $900 million. The managers are already chosen. They are UniCredit Aton, Goldman Sachs and Morgan Stanley, as specify investment bankers. In Acron refused to comment this information. But the planned earnings corresponds the current company estimation: as of April, 29 Acron quotations on RTS, 20% of its stocks cost $932 million.

   Acron is the third producer of mineral fertilizers in Russia. The holding comprises JSC Acron (Veliky Novgorod), JSC Dorogobuzh (Smolensk region), Chinese enterprise Hongri Acron (China), as well as two transshipment terminals in Kaliningrad and Sillamäe (Estonia). According to the Russian Accounting Standards (RAS) Acron earnings in 2007 totaled RUR 30,9 billion, the net income was RUR 13,2 billion taking into consideration the revaluation of financial investments (without consideration – RUR 5,7 billion). The company owns holdings of stocks in Silvinit (8,1%), Sibneftegaz (21%, owns a license for Beregovoy gas-condensate filed, Gazprombank controls the company) and Apatite (10,3% through joint venture with the Norwegian Yara). According to the unofficial information, the company is controlled by Vyacheslav Kantor.

   Acron has officially declared about the beginning for the public offering preparation in mid-November, 2007. Then the holding first vice-president Alexander Popov has been already saying about plans to sell around 20% stocks. And right before this Acron president Ivan Antonov explained the company had to up the capitalization before IPO more than twice. Acron has even outstripped the target. For the last half-year the company capitalization grew by 171%, to $4,66 billion.

   However, the current company indices look rather attractive for investors as well. In 2007 Acron earnings by RAS grew by 28%, the net income (without the revaluation consideration) – by 79%. Also Acron has recently published its financial results for 1Q 2008. The holding earnings grew by 57%, EBITDA – by 186%, and the net income – 3,2 times as compared to an analogical period last year. However, Acron had to give up some elements of preparation for the offering. In particular, Dorogobuzh will not be shifted to the one stock with JSC Acron. On the other hand, the company keeps the plans to introduce independent members to its directors’ board. This event has to occur within the annual stockholders’ meeting on May, 29. Then the holding intends to present the report for 2007 by IFRS standards.

   Experts mark Acron has chosen the nontraditional time to hold IPO. "IPO is usually held in March-April after the reporting for nine months being published or in October-November after the results for a half-year being declared", explains the head of Metropol Investment Financial Company department for investment and banking services Ekaterina Akhanova. However, the managers of Acron offering are sure they can hold IPO successfully. "The largest Russia’s IPO – Rosneft offering – has been held in July", marks one of the managers.

   Troika Dialog analyst Mikhail Stiskin adds the current situation at the mineral fertilizers market favors the offering greatly. "2008 results will be the record one for Acron due to high prices for compound and nitrogenous fertilizers, while the prices for their raw materials remain lower than the world ones", considers Mr. Stiskin. According to his forecast, Acron stocks will be popular among the investors within the offering – just some companies show such growth rates at the global stock market.