The Globaltrans Investment IPO is expected to raise around $510 million in a London IPO. Going by the valuation of this much price, the company shares will be valued at 10.8 to 14 times earnings or the PE ratio.
The total number of shares being offered in Globaltrans Investment is around 33.9 million.
The expected price band will be $11.5 to $15 per share and hence the Globaltrans Investment company will be valued at a huge market capitalization in the range on $1.35 billion to $1.75 billion.
The client list of Globaltrans Investment is having big and reliable business names – Lukoil, Rosneft & Severstal.
Deutsche Bank and Morgan Stanley will be assisting the Globaltrans Investment for raising money through IPO proceeds. The pricing will take place on April 29.
Recently, another infrastructure company called, Novorossiisk Commercial Sea Port was listed in November, and as compared to that, the Globaltrans Investment IPO appears to be at a slight discount.
Novorossiisk, which has fallen 18 percent since their listing, trades at 15 times 2009 earnings. Chinese railway container firm Tielong Logistics trades at about 20 times 2009 earnings.
U.S.-listed Union Pacific benefiting from constrained infrastructure, higher oil prices and environmental concerns, trades at 12.7 times 2009 earnings of $10.7. It is expected to generate a 20 percent growth in earnings in 2009.
By comparison, analysts expect Globaltrans' earnings to grow 38 percent to $129 million in 2009 and by 24 percent to $156 million in 2010, thanks to surging demand in metals, oil and cement.
London is emerging as a preferred destination for various companies to list their IPOs and Shares. Recently, the Mexico based metals company, Fresnillo, a spinoff from Penoles, decided to list on LSE.
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