ONE of Russia’s biggest property developers, PIK Group, is planning a $1.5 billion (£750m) flotation on the London Stock Exchange.

The Moscow company, which has expanded rapidly with the Russian property boom, is planning to float a stake of up to 15%, making the offering bigger than the $1.4 billion London float last week by AFI Development, a Russia-focused developer owned by the Israeli conglomerate Africa Israel Investments.

PIK has appointed the investment banks Morgan Stanley, Deutsche Bank and Nomura to advise it on the listing.

Founded in 1994, PIK employs more than 14,000 people and has a property portfolio worth $8.8 billion. The company focuses on building homes for the fast-emerging middle class in Moscow and is extending its reach into other Russian regions.

In a statement, chief executive Kirill Pisarev, said: “The planned [offering] is an important next step in our development, and will provide PIK with capital to continue its growth in the Russian real-estate market”.

He added: “As disposable incomes continue to grow in Russia, and people seek higher standards of living, there is growing demand for better quality housing. PIK is well positioned to benefit from this trend.”

PIK, which joins a burgeoning number of Russian companies coming to London, will list global depositary receipts on the London Stock Exchange as part of a global offering of new and existing shares and GDRs.

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