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Russia's Renaissance Insurance plans IPO on Moscow Exchange

By Reuters

By Andrey Ostroukh

MOSCOW -Renaissance Insurance Group said on Monday it plans to list its shares on the Moscow Exchange and raise up to $290 million in an initial public offering (IPO), riding Russia’s emerging IPO wave.

Russian IPO activity, hit by the COVID-19 pandemic last year, is picking up pace quickly as the economy improves and concerns over fresh Western sanctions fade. The Moscow Exchange expects to hold 10 share listings by the year-end.

Renaissance Insurance eyes raising up to 21 billion roubles ($289.27 million) in an IPO that would make it Russia’s first listed insurance company, it said in the intention-to-float statement.

Renaissance Insurance, among the 10 largest insurers in Russia, said it also plans a secondary offering of existing ordinary shares by certain shareholders.

The company plans to pay out at least 50% of consolidated net profit in dividends, it said, after posting a nearly 15% net profit increase to 4.7 billion roubles ($64.74 million) in 2020.

The statement confirms an earlier Reuters report that Renaissance Insurance, founded in 1997, was considering listing in Moscow this autumn.

The IPO proceeds will be used to accelerate organic growth, investments in digital initiatives, potential acquisitions and the possible repurchase of the listed shares, the company said.

Renaissance Insurance says it relies heavily on digital technologies, such as artificial intelligence (AI), which is set to help expand its presence in Russia.

The company did not provide the exact timing for the IPO and possible acquisition targets.

Credit Suisse, J.P. Morgan and VTB Capital are acting as joint global coordinators and joint bookrunners of the IPO. BCS Global Markets, Renaissance Capital, Sberbank and Tinkoff are acting as joint bookrunners, Renaissance Insurance said.

($1 = 72.5975 roubles)