Segezha Group, one of Russia’s leading timber producers, which is owned by a local financial conglomerate AFK Sistema, may invest up to US$400-500 million in its further development during the next several years, which will take place through the raise of funds from IPO and that will be conducted on the Moscow Stock Exchange this spring.
A representative of Segezha Group during an interview with some Russian and foreign media said that the holding is constantly evaluating various options for funding its further development, including with the help of stock markets, although a final decision, regarding IPO has not yet been taken.
Representatives of AFK Systema in November last year said that Segezha Group is the most likely candidate for an IPO among the other assets of the holding, while the main reason for this is the ongoing growth of the business.
It is planned, a significant part of these funds could be allocated to an increase in the output of the company, particularly the increase in the production of paper and pulp.
