Russia's Pharmsynthez has unveiled plans to float on the Moscow Interbank Currency Exchange (MICEX) to help fund a new facility and international expansion.

The company, which specialises in manufacturing active pharmaceutical ingredients and medicines for use in oncology, gynaecology, treatment of immunodeficiencies and tuberculosis, expects to raise about 500 million rubles (£10.5 million) through the initial public offering. A listing of around 30% of the firm's shares is scheduled for November.

Currently Amber Trust, a fund set up to invest in Russia and the Baltic states, holds 75% of the company, while Pharmsynthez chief executive Dmitry Genkin has a 25% stake. He said that the cash will "help to finance our investment programme, which includes the construction of a new production plant near St Petersburg and the acquisition of strategic assets outside of Russia to facilitate our international expansion".

Mr Genkin added that “there is enormous potential for growth in innovative medicine production in Russia, and Pharmsynthez is extremely well placed to capitalise on that growth". The company’s revenues more than doubled in the first half of 2010 to 130.8 million rubles, while net profit reached some 5.2 million rubles compared with a like, year-earlier loss of 7.8 million rubles.

Pharmsynthez added that market capitalisation upon listing is expected to be above £30 million. It is the fourth pharmaceutical company to float in Russia.