City & Corporate: Citigate to support Georgia railway IPO

Citigate Dewe Rogerson has won a mandate to promote the London-based privatisation of Georgia's state railway.

The state of Georgia ann-ounced on Monday that it plans to float a 25 per cent stake in the national railway, potentially valuing the business at £570m.

Citigate is thought to have picked up the IPO brief via a competitive pitch and will support international financial media and investor relations during the process. Financial practice directors Andrew Hey, David Westover and Justin Griffiths will lead the agency's involvement alongside Marina Zakharova, a director in the investor relations team.

During the process, the state of Georgia will look to highlight the strong GDP growth in the region, transportation of the increasing regional oil production and the expansion of its network into new transit routes. The tracks are mainly used to move freight along the Caucasus corridor, the shortest transit route from the Caspian Sea and Central Asia to the Black Sea and Europe.

The London IPO market was dominated by floats by firms from the CIS region before the economic downturn. However, so far this year only Brunswick-advised RusPetro has completed an IPO on the London Stock Exchange from the region.

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