Kremlin-controlled firm will become first Russian defence company to list on LSE
The Kremlin-controlled company whose helicopters were used in the 1979 invasion of Afghanistan is coming to London.
Russian Helicopters will become the first global Russian defence company to list on the London Stock Exchange after it announced plans to raise $500m (£307m).
The company has about 8,500 machines in operation and accounts for 13% of the global helicopter fleet.
A valuation has not yet been set for the company, which had revenues last year of $2.7bn. It is thought it will follow the example set by other Russian listings in London, such as Rosneft, which floated 15% of its shares in 2006. If investors' appetites meet expectations, this could give Russian Helicopters a valuation of over $3bn.
The listing is set to take place by the end of June, with Bank of America Merrill Lynch, BNP Paribas and VTB Capital appointed to handle the deal.
State-controlled defence group Oboronprom, which owns the majority of Russian Helicopters' shares, will sell about $250m-worth. A further $250m of equity will also be issued. The money will be used to pay off debts and increase stakes in other subsidiaries.
The company will launch an investor roadshow this month. Shares will be listed only as GDR deposits, meaning the company will not earn a full FTSE listing and will require a lower level of disclosure.
The company's helicopters appeared in the ill-fated invasion of Afghanistan. Today it makes the world's most widely used medium-lift helicopter, the Mi-8, and competes against British firm AugustaWestland, now part of the Italian defence group Finmeccanica. Military sales make up about 60% of its revenues.