OAO PhosAgro (PHOR) fell the most in two weeks as its controlling owners sell shares after the price of Europe’s largest phosphate-fertilizer producer rose to a record.
PhosAgro tumbled as much as 5.7 percent and traded down 4.6 percent at 1,317 rubles by 1:06 p.m. in Moscow, the steepest intraday drop since March 26. The stock lost 4.9 percent to $14.05 in London. The amount of shares traded was 189,223, equivalent to about 53 percent of the three-month average.
PhosAgro’s stock has dropped 5.6 percent since reaching a record high of 1,394.5 on April 5. A group of companies controlled by Andrey Guryev and his family is offering a 9 percent stake in the form of shares and global depositary receipts, according to a statement from PhosAgro late yesterday. They will reinvest about 45 percent of the proceeds in new stock issued by the Russian company, according to the statement.
“We believe that pressure on the share price will probably remain in the short term,” UralSib analysts said in an e-mailed note today. “In the long term, the appeal of the shares will increase as the overhang risk eases and the free-float increases by about 150 percent.”
The offering may expand Phosagro’s free float to about 19 percent, opening the possibility of entry into the MSCI Inc. indexes and expanding its investor base, Denis Gabrielik, an analyst at Otkritie Capital in Moscow, said by e-mail. PhosAgro’s initial public offering in 2011 raised $565 million through the sale of a 10.7 percent stake in the producer.
Adorabella Ltd., Chlodwig Enterprises Ltd. and Miles Ahead Management Ltd. are selling the shares in the offering, PhosAgro said yesterday. The companies represent the interests of the Guryev family, according to a February Eurobond prospectus on the company’s website.
To contact the reporters on this story: Yuliya Fedorinova in Moscow at firstname.lastname@example.org; Ksenia Galouchko in Moscow at email@example.com
To contact the editor responsible for this story: Wojciech Moskwa at firstname.lastname@example.org