Russian Grain Terminal, NKHP, to Sell 20 Percent Stake Through Moscow IPO

A minority shareholder in the Russian Black Sea grain terminal, NKHP, located at the port of Novorossiisk, plans to sell a 20% stake in the operation through a Moscow-based initial public offering (IPO). State-controlled United Grain Company owns a majority 51% stake in the terminal, and two Cyprus-based firms, Yota K and Svepko Court, own 18.5% and 10.8% stakes respectively, according to NKHP accounting reports.

The unnamed shareholder is planning to raise between US$50 million and US$70 million through the offering which is scheduled to take place by the end of November.

NKHP, which in Russian stands for Novorossiisky Combinat Khleboproduktov and in English is Novorossiysk Bread Combine, has an annual grain handling capacity of 3.5 million tons, rivaling NGT and KSK, two other grain terminals at Novorossiisk, from where Russia ships wheat to buyers in the Middle East and North Africa.

In 2014, the terminal began a US$97 million expansion project with the target of increasing the facility’s capacity to 6.5 million tons by 2018.

NKHP's second largest shareholder, Summa Group, which is owned by businessman, Ziyavudin Magomedov, and which also owns a 50% stake in United Grain Company, will not be selling its stake as part of the IPO according to sources.