In Russia, it often seems that an IPO is really just a private placement with some PR thrown in. This would appear to be the case with the recent announcement by Russia's major pharmaceutical company Apteka 36.6 to offer 20 percent of its shares on the Moscow Interbank Currency Exchange (MICEX) on Jan. 23. The company plans to offer 1.6 million of its common shares at $11-$16 per share.

Apteka 36.6 also plans to offer an over-allotment option, placing an additional 280,000 shares. The final price of the stake will be set on Jan. 22. It has refused to identify the amount it expects to make from the offering, but the market expects it to be in the area of $20 million to $25 million. The ING bank will be the placement's underwriter and lead manager, while MDM-Bank has been chosen as co-manager.

In almost every sense, the company's plans sound like an IPO, but there is a catch. A source close to this story told IA that the "public" part in this offering is largely absent. In fact, this source told us that the use of the term "private placement" would be more appropriate. The new shareholders have already been decided upon.

In itself this is fine, but the new shareholders are expected not to be interested in trading their shares. Thus, we can expect not to see much liquidity in the stock. And the real IPO, which in theory will be its third, is not expected for at least a couple of years.

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