March 1, 2007 – LAWFUEL – Law & Business News – Chadbourne & Parke LLP represented Chagala Group, a Kazakhstan real estate company, in a $104 million initial public offering on the main market of the London Stock Exchange.
Chagala sold 10.7 million global depository receipts at $9.75 each, the maximum price in the range that ING used to market the sale. The shares rose $1.25, or 13 percent, to $11 on February 26, their first day of trading on the London Stock Exchange. The IPO gives the company an implied market value of just over $200 million.
Chagala Group builds hotels, apartments, offices and leisure facilities that serve international business executives based in Kazakhstan and working in the energy industry. Chagala will use the proceeds of the IPO to fund construction costs, expand its land holdings and buy out its partner in its Bautino hotel in Kazakhstan, amongst other things.
The Chadbourne team was led by Almaty office managing partner Kenneth Mack, with the assistance of London managing partner Claude Serfilippi and London partner Charez Golvala. Also working on the deal were Almaty associates Victor Mokrousov, Yelena Pestereva, Yevgenia Nossova and Mukhit Yeleuov, and London associate Lauren Caplan.
The IPO is one of 14 that Chadbourne has been involved with around the world since the end of 2004. The IPOs have been in banking, white goods manufacturing, telecommunications, mining, alternative energy, technology company, oil refining, television, geothermal power, specialty and commodity chemicals, and the ceramic tiles industry.
The Firm’s Securities and Capital Markets practice has extensive experience advising underwriters and placement agents, as well as issuers and initial purchasers, in public and private U.S. and global offerings of securities, including SEC registered offerings of equity and debt, Rule 144A and Regulation D private placements and Regulation S offerings. These transactions range from IPOs by start-up companies to registered shelf offerings and private placements of debt and equity securities by Fortune 500 issuers.
Chadbourne’s Russia, CIS and central European offices have been especially prominent when it comes to advising on capital markets transactions, including private placements and public offerings by local and foreign issuers, since advising on the first ever IPO of a Russian company, Vimpelcom, in 1996.