Segezha Group PJSC announced its intention to conduct an initial public offering of ordinary shares and to list on Moscow Exchange.
The Offering will consist of a primary offering of newly issued shares to raise at least RUB 30 billion and an over‑allotment option of secondary shares. Proceeds from the primary offering will be deployed to accelerate the Company’s growth by financing value accretive investments and optimizing leverage.
Mikhail Shamolin, President of Segezha Group, said:
“Since its foundation in 2014, Segezha Group has rapidly grown its financial and operational results, thanks to a strategy focused on modernizing its production facilities, entering new high-margin and growing market segments, expanding its forest resources and a constant focus on cost control. Today, Segezha Group is a robust, vertically integrated company and a successful high-margin business that is a leader in the global forest products industry. Segezha Group’s diversified business model has demonstrated its efficiency and resilience, and the Company delivers high levels of profitability, with an OIBDA margin in 2020 of 25%. We produce a wide variety of paper, packaging and other wood-based products. We are also an innovator in Russia of high-growth products of tomorrow, and this year launched the first production facility in Russia for large cross-laminated timber (CLT) panels, which enable the construction of high-rise wooden buildings.
“Our principal operations are in Russia, home to the world’s largest forest resources. Our key competitive advantages include an extensive high-quality resource base, with 9.2 million hectares of forests1 – an area larger than Austria – under long-term lease as of the end of 2020. Our own logging on this forest land supplied 80% of our wood needs in 2020. We also benefit from having a cost base in rubles while more than 70% of our revenue is in foreign currencies thanks to exporting to more than 100 countries. Our product line is diversified and is increasingly focused on high-margin products, with demand driven by robust long-term megatrends including global economic expansion, population growth, urbanization, the growth of e-commerce, as well as changing consumer preferences and progressive substitution of plastics by wood-based products.
“As the world looks for sustainable solutions to secure our planet’s future, we have made sustainability one of our core priorities and a major pillar of our growth strategy. As of year-end 2020, 83% of our leased land was certified to international standards, helping to ensure that the forests are responsibly managed and create environmental, social and economic benefits. We reforest the areas where we harvest timber, and deploy energy-saving, waste-recycling and other green technologies at our production facilities.
“Our strategic advantages, expertise in project delivery and leading market positions set the foundation for future accretive expansion aimed at enabling the Company to deliver industry-leading shareholder returns. I am confident that we have significant growth potential ahead of us, and I am pleased that our new shareholders will have the opportunity to share with us in our future success.”