Russian group Global Ports said it planned to raise up to $572 million from an initial public offering in London, hoping for investor interest in the fast-growing Russia container market.

Global Ports, a unit of transport and infrastructure holding group N-Trans, set a $14.70-$16.10 price range for an IPO expected to comprise 35.5 million shares, it said.

It kicked off a series of investor meetings in Moscow, London and Toronto and plans to close the order book this week, two sources close to the deal told Reuters.

"So far, the placement has been going very well," said one of the sources.

Russian private issuers have been queuing up to access London capital markets this year, receiving a lukewarm reception from investors reluctant to pay some of the valuations sought by owners.

But investors say Global Ports is well placed for a successful float thanks to the quality of the asset as well as a reasonable valuation.

"If they make it, it will calm the market," one investment banking source told Reuters.

Russian IPOs have raised $3.4 billion in the year to date, including the $1.4 billion New York IPO of search engine Yandex, while issues that sought to raise a combined $7 billion have been shelved.

Investors have been particularly reluctant to back individual owners using IPOs as a cash-in, preferring companies using proceeds for expansion.

FAIRLY VALUED
The price range implied a pre-money equity value for Global Ports -- the leading container terminal operator serving Russian cargo flows -- of $2.2-$2.4 billion.

"I think they will be able to place successfully. In terms of asset quality, it maybe is the best IPO this year," said Alexander Golovtsov, Head of Investment Research at Uralsib Asset Management, referring to IPOs by Russian companies.

"The valuation looks fair -- it is similar to that of Transcontainer and more expensive than that of FESCO which is justified as FESCO does not have such expansion opportunities," added Golovtsov.

N-Trans will sell existing shares, while the business itself is eyeing proceeds of around $100 million from new shares to fund investment in Russian ports.

A source close to the deal said earlier this month Global Ports was seeking $750 million from the IPO, although that figure was based on the most optimistic analyst valuation of the company.

If successful, Global Ports would be the third IPO launched by N-Trans after freight company Globaltrans and road and bridge builder Mostotrest .

The Russian container traffic market was expected to grow over 18 percent annually until at least 2013, Global Ports said, citing a forecast by independent maritime consultancy Drewry, supported by Russian economic development and growing volumes of imports and exports.

Deutsche Bank, Goldman Sachs International, Morgan Stanley and Troika Dialog are joint global coordinators and joint bookrunners of the global offer.

Global Ports is expected to double revenue by 2013 and grow net profit 2.4-fold on the back of container market growth, research notes obtained by Reuters showed.

They also forecast revenue to grow 41 percent in 2011 to $540 million, net profit to rise 54 percent to $183 million, and earnings before interest, taxation, depreciation and amortisation to jump 50 percent to $310 million. (Reuters)