Bank of America and Credit Suisse are bookrunners on the IPO, which will sell 25m units in Kismet Acquisition One, at $10 each.
Each unit sold consists of one share of common stock and one-half of a warrant, exercisable at $11.50.
The company is a blank cheque vehicle that will use the proceeds to acquire a stake in one or more companies. The company has the ability to raise an additional $20m at the closing of an acquisition.
The Spac will be led by Ivan Tavrin described in its SEC filing as “a Russian entrepreneur with experience in building, operating and investing in businesses, predominantly in the TMT (technology, media and telecom) and consumer industries, both in the private and public markets.”
Tavrin is the CEO of Kismet Capital and is also a founder of UTH Russia Ltd (UTH) one of the largest independent media broadcasting groups in the country, which comprises three television networks, including the Disney Channel (Russia) owned through a joint venture with Disney.
Between 2012 and 2016, Tavrin was CEO of MegaFon, the second largest telecommunications operator by revenue in Russia.
While the company has the freedom to make acquisitions across numerous regions, it will likely look to strike a deal in Russia.
“While we may pursue an acquisition opportunity in any industry or sector and in any region, we intend to focus on industries that complement our management team’s background so we can capitalise on their ability to identify, acquire and operate a business,” Kismet said in its SEC filing. “We therefore intend to focus on companies in the telecommunications infrastructure, internet and technology and consumer goods and services sectors operating in Russia (which may include a business based in Russia which has operations or opportunities outside of Russia or a business based outside of Russia which has operations or opportunities in Russia).”
Sources say that there is substantial demand for Russian equities among investors, who continue to warm to the country on the back of rising markets and attractive dividend yields. Because of this momentum Russian ECM has experienced a resurgence in the past few weeks, in both the US and Europe.
A 5.75m American Depositary Receipt trade in It firm HeadHunter last week followed three trades in gold miner Polymetal over the last three months, two on the London Stock Exchange and one in Moscow.
There was also a trade in Russian retailer Detsky Mir on the Moscow bourse in June for Rb11bn ($157m) and a $1.06bn sale in Yandex, Russia’s foremost internet company in which around $600m worth of shares were sold to a consortium of Russian oligarchs including Chelsea FC owner Roman Abramovich. Investors on the Nasdaq were sold $460m worth of shares.
Spacs in general have also been in focus in the past few months. Last week Churchill Capital Corp III, an investment vehicle run by former Citi banker Mark Klein, merged with Multiplan, a provider of healthcare services.
This week Bill Ackman, the hedge fund magnate who runs Pershing Square is expected to price the larges Spac ever in a $4bn IPO on the New York Stock Exchange.