Essar Energy raises $1.95 b

 
The company is expected to commence trading on London Stock Exchange on May 4, 2010, it said in a statement.

The price of 420 pence per share for sale of 303 million shares in the IPO to institutional investors would give the company a market capitalisation of £5.47 billion (about US$8.4 billion).

Investment banking sources earlier said that the public issue was fully subscribed within the previously proposed price range of 450-550 pence.

However, the company decided to price the IPO at a lower price of 420 pence “in order to ensure a successful listing and leave more on the table for investors,” a source said.
Pursuant to the IPO, wherein 23.24 per cent of total shares were sold, the company would list 1,303 million shares.

“At the offer price, the company expects to raise gross proceeds of approximately £1,273 million (approximately US$1,947 million), assuming no exercise of the overallotment option,” the company said.

It is expected that Essar Energy will be considered for inclusion in the FTSE 100 Index.

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