PIK Group, a Russian residential developer, said today it aimed to raise up to $2.2bn (£1.1bn) through a flotation in London and Moscow that would value it at $14bn (£7bn).

PIK, one of the leaders of the booming property development market in Russia's capital, said it had set the indicative price range for its initial public offering at $25.00-$31.00 a share. Even if priced at the bottom of the range, it would give PIK a value of $11.4bn (£5.7bn), beating the previous record Russian IPO by AFI Development earlier this month.

PIK is targeting the middle income housing market. CEO Kirill Pisarev said: ‘We believe that our 12-year track record, our dedicated focus on the growing mass market residential sector underpinned by expansion dynamics of the Russian economy, and our experience and capacity to deliver, offers a unique and attractive proposition to investors.’

PIK's revenues rose 90 percent in 2006 to $1.55bn (£770m) and its earnings before interest, tax, depreciation and amortisation (EBITDA) was $486m (£243m). Net profit soared from $20m (£10m) in 2005 to $298m (£149m) last year.

PIK, which has Deutsche Bank, Morgan Stanley and Nomura acting as coordinators and bookrunners and Merrill Lynch as joint lead manager, has 14,000 employees. It has a landbank of 2,720 acres with a net selling area of 113m sq ft. According to CB Richard Ellis, the combined market value of PIK’s properties is $8.8bn (£4.4bn).