Russian real estate developer Etalon Group has priced its IPO on the main market of London Stock Exchange at $7 (EUR 4.8) per global depository receipts (GDR).

The offering comprises more than 82 million ordinary shares in the form of GDRs, equivalent to $575 mln (EUR 398 mln). The proceeds will be used to acquire development land. One GDR represents one share.

The company will sell 71.4 million newly issued ordinary shares in the form of GDRs, and entities beneficially owned by Gazprombank Asset Management, Baring Vostok, the Zarenkov family and other members of management, collectively known as the selling shareholders, will sell 10.7 million existing ordinary shares in the form of GDRs

This will represent a free float of approximately 28% post new share issue and prior to exercise of an over-allotment option.

A number of other leading Russian real estate developers are listed via GDRs on London Stock Exchange. These include AFI Development, Sistema-Hals, RGI, LSR and PIK.