PIK pushes ahead with capital markets rejuvenation

Published: July 28, 2017

Russia’s PIK Group has plans to ramp up capital markets activity in the coming years, as the firm announces a consolidation of its shareholder structure with company president Sergei Gordeev buying out two minority holders.

Russia’s largest residential real estate developer, PIK is looking to expand its capital markets activity in both debt and equity, as a way to diversify away from bank loans.

On the equity side, the company is planning a Second Public Offering in the medium term.

“It is within a three year timeline,” Alexander Dolzhich, advisor to PIK’s chief executive officer for capital markets and M&A told EMEA Finance. “If the markets are in good shape, then the company will be able to proceed earlier than that.”

VTB will run the SPO. PIK has sold a 7.6% stake in the company to VTB, which is also acting as portfolio advisor.

“The sale to VTB was structured like an SPO facility,” said Dolzhich. “It allows the company to benefit from additional cash to reduce debt.

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