The information herein is not to be distributed outside of the Russian Federation and is not an offer or an invitation to make an offer, and is not intended for executing any transactions, including transactions with securities, or transactions intending to use securities. The information herein describes the intentions and plans of Public Joint Stock Company “Research and Production Corporation United Wagon Company”, which may change over time, and does not constitute an advertisement of securities, promise or guarantee of the sale of securities or any assets, placement of the securities or entry into any contract. This document contains evaluations, which may differ from those of third parties. An investor should independently evaluate his/her own risks while making his/her investment decisions.
Public Joint Stock Company “Research and Production Corporation United Wagon Company” (“RPC UWC” or the “Company”), the market leader in innovative railcar manufacturing in Russia, announces the price range for its offering (“IPO”, the “Offering”) of its ordinary shares (the “Shares”) on the Moscow Exchange.
- The price range for the Offering has been set at between RUB 650 and RUB 750 per Share.
- RPC UWC intends to offer 5,556,000 additional Shares as part of the IPO. At the same time, the Company’s sole shareholder, United Wagon Plc (Jersey), a fully-owned subsidiary of ICT Group, will offer a part of the Shares. As a result of the Offering, the Company’s free float of the Shares may stand at circa 14%.
- The announcement of the offer price for the Shares is planned for 28 April 2015. The final decision on the offer price for the Shares will be made by the Board of Directors of RPC UWC before the beginning of the Offering.
- The beginning of the Offering is planned for 29 April 2015.
- The Offering provides for the sale of Shares through the facilities of the Moscow Exchange pursuant to its settlement procedures.
- The Shares have been admitted to trading on the Moscow Exchange in the First Level quotation list.
- The Company plans to agree to a lock-up for the period of 180 days after the date of the Offering.
- VTB Capital is the global coordinator, co-originator and joint bookrunner of the Offering; Otkritie Financial Group is the co-originator and joint bookrunner of the Offering.
RPC UWC is a leader in manufacturing of innovative railcars in the 1520mm gauge area. Established in 2012, RPC UWC is an integrated rail holding, which develops, manufactures and maintains new generation railcars and also provides leasing and transportation services. In 2014, the Company produced 9,600 innovative railcars, making it one of the Russia’s largest innovative railcar manufacturers. As at the end of the first quarter of 2015, RPC UWC’s fleet under management stands at more than 21,000 railcars.
Innovative freight railcars have improved technical and economic characteristics that increase efficiency of freight traffic for rolling stock owners and shippers. RPC UWC produces new generation railcars equipped with Barber bogies with 25t axle loads. Features of this type of rolling stock include greater capacity, longer service life, lower operational costs and a separate tariff system for empty runs, which mean that these railcars have significant economic advantages compared to railcars equipped with standard bogies.
Manufacturing innovative railcars is one of the most promising segments of the Russian railcar manufacturing market. Market experts expect nearly 35% of the Russian Federation’s railcar fleet to be written off between 2015 and 2022, and this, in conjunction with the reduced economic efficiency of the older wagons, means there will be stable demand for new generation rolling stock. Government measures supporting innovative railcar manufacturing, including a special tariff system for empty runs and subsidies for purchasing innovative wagons, are additional drivers behind the growing demand for new generation rolling stock.
RPC UWC has the most advanced production facilities in the industry. Joint Stock Company Tikhvin Freight Car Building Plant, located in Tikhvin, Leningrad region, is the Company’s production centre. The total investment in the construction of the plant amounted to US$ 1.5 billion. The plant’s current annual production capacity is 16,000 innovative railcars (increasing to 22,000 by 2016) and 30,000 car-sets using innovative casting methods. The plant has an integrated process system which combines railcar assembly and castings production lines with a high level of automation, efficiency and versatility. Other parts of the UWC rail holding include LLC NPC Springs, which meets the Company’s need for heavy-duty rail springs for innovative bogies and its own engineering centre. RPC UWC also has a network of over 40 service centres across Russia, Kazakhstan and Belarus.
RPC UWC’s business model enables the Company to promote its products to the market through multiple channels, meaning it has effective operations in all market conditions. Long-term operational leasing is a key element of RPC UWC’s business. RPC UWC provides its leasing services through RAIL1520, the common brand for UWC’s leasing companies and one of the Russia’s five largest lessors in this market. Besides leasing, RPC UWC conducts direct sales of new generation wagons through its own transport company, LLC Vostok 1520, which also provides rolling stock operating services. Through the combination of leasing and direct sales, the utilisation rate of RPC UWC’s fleet is nearly 100%. The railcars that RPC UWC sells or leases are mainly used for export freight traffic, which is a rapidly growing area of freight transport.
In 2014, RPC UWC generated consolidated IFRS revenue of RUB 17,057 million, which is more than 5 times the figure for 2013. EBITDA grew to RUB 3,572 million in 2014, compared to RUB 1,403 million in the previous year. The EBITDA margin in 2014 was approximately 21%.
Research and Production Corporation United Wagon Company is focused on achieving its key strategic goals, which are to increase its market share and maximise the economic effect from operating innovative railcars. For this, the Company intends to launch new, value-added products. In the medium-term, RPC UWC plans to expand its range of innovative railcars to 60 models. The Company’s strategy also includes diversifying its client base by both geography and industry, as well as developing its service centres network and its own expertise in operating rolling stock. Gradually enhancing the operating efficiency is another key area of focus for RPC UWC.
For more information about the Company, please visit www.uniwagon.com, or contact:
RPC United Wagon Company
Head of Corporate Communications
+7 499 999 1520
Deputy Head of Corporate Communications
+7 499 999 1520
+7 495 660 05 91
+7 925 841 85 14
+7 495 660 05 91
+7 916 212 33 57