Global Capital

United Wagon Co, a Russian maker and lessor of railway cars, has set the price range for its IPO, the first in Russia for over a year.

VTB Capital is global coordinator and Otkritie Financial Group also a bookrunner of the deal, which is expected to raise between Rb9.6bn and Rb11.1bn ($180m-$210m) on the Moscow Exchange.

ICT Group, a company run by billionaire Alexander Nesis, is floating the company, which is growing fast despite the current weak industry environment. United Wagon has signed contracts for the next 12 months and needs capital to finance the increase of its railcar fleet to satisfy its clients’ needs. It also believes the market is set to recover and therefore wants to obtain a competitive advantage.

The deal is set to be priced on Tuesday April 28, with trading beginning on April 30.

Up to 14% of the company, 14.8m shares, will be sold.

Of those, about 5.6m will be primary shares and up to 9.2m secondary, to be sold by ICT.

The price range is Rb650 to Rb750 a share, which implies a pre-money valuation for the company of Rb65bn to Rb75bn ($1.2bn to $1.4bn).

ICT, which founded Nomos Bank, now has a large stake in Otkritie, as well as a significant holding in Polymetal, the gold and silver producer.

United Wagon builds 1,520mm gauge railcars. It made consolidated IFRS revenue of Rb17bn last year, more than five times its figure for 2013. Ebitda more than doubled, from Rb1.4bn to Rb3.6bn. The company’s Ebitda margin was about 21%.

It can produce 16,000 rail cars a year, which is set to increase to 22,000 by 2016.

It also has a fleet under management of more than 21,000 wagons.