BVI-registered company Mail.ru announced Initial Public Offering price

British Virgin Islands-incorporated Mail.ru Group Limited, which is the largest Internet company in Russian-speaking Internet markets, last week announced the price for its initial public offering of ordinary shares in the form of global depositary receipts (GDRs), to be admitted to the Standard Listing on the London Stock Exchange. The price of the public offering, which comprises 32.93 million ordinary shares, offered in the form of GDR, has been set at US$27.70 per GDR. This is equivalent to US$912.04 million at the offer price. One GDR will represent an interest in one ordinary share of the company.

The BVI company and the Selling Shareholders have granted to the joint bookrunners the option to acquire up to 3.29 million additional ordinary shares in the form of GDR as the over-allotment option. 3.03 million ordinary shares in the form of GDRs will be sold by the company, and 29.89 mln shares will be sold by selling shareholders, not including the shares to be sold pursuant to the exercise of the over-allotment option.

Following the offering, the total number of shares in issue will be 196.30 million. The offer price implies an equity value for the company of US$5.63 billion prior to new share issue and US$ 5.71 billion post new share issue. The gross proceeds from the primary portion of the offering are expected to be approximately US$84.01 mln (assuming no exercise of the over-allotment option). These proceeds will be used to fund, in part, the agreed acquisition of the additional equity stake in online social networking site vKontakte.

Delivery and payment for the GDRs is expected on 10 November 2010. Admission of the GDRs to the Official List and to trading on the London Stock Exchange plc’s regulated market is expected to occur on 11 November 2010. Mail.ru Group Limited expects that conditional trading through the International Order Book will commence on or about 5 November 2010, and unconditional trading is expected to occur on 10 November 2010.

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