Why Qiwi (QIWI) Stock Is Down Today

NEW YORK (TheStreet) -- Qiwi (QIWI) stock is sliding after pricing its previously-announced public offering of Class B shares. By midmorning, shares had dropped 2.7% to $40.50.

A total 7,973,330 Class B shares represented by American Depositary Shares (ADSs) will be offered, of which 1.99 million will be sold by the company and 5.98 million sold by certain shareholders. Shares represented by ADSs will be sold at $40 per ADS.

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Underwriters have also been granted a 30-day option to purchase up to an additional 299,000 shares from the company and 897,000 shares from the selling shareholders. 

Net proceeds from the offering, expected to close around June 20, will be used for general corporate purposes. Qiwi said this may include potential mergers and acquisitions, working capital and capital expenditures. Qiwi will not receive proceeds from the selling shareholders' stake. 

Credit Suisse and VTB Capital will serve as joint book-running managers for the offering. William Blair, Aton and Gazprombank are serving as joint-lead managers.

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