Russia's En+ launches IPO in London and Moscow (updated)
05/10/2017 07:53
(Adds details, quotes, context)
MOSCOW, Oct 5 (Reuters) - En+ Group, which manages Russian
tycoon Oleg Deripaska's aluminium and hydropower businesses, has
announced its intention to conduct an initial public offering on
the London Stock Exchange and the Moscow Exchange.
The planned deal is the first major IPO of a Russian company
in London since 2014 when Western countries imposed sanctions
over Moscow's role in the Ukraine crisis, chilling investor
appetite for Russian assets.
The listing will provide a boost to London's IPO pipeline,
which has slowed following Britain's vote to leave the European
Union.
En+ owns assets in metals and energy, including a 48 percent
stake in Hong Kong-listed Russian aluminium producer Rusal
0486.HK , which is a big consumer of hydroelectricity produced
by companies owned by En+.
En+ aims to raise $1.5 billion, of which $1 billion is
expected to be primary proceeds, from the initial public
offering (IPO), it said in a statement on Thursday. The London
admission is expected to take place in November.
Ahead of the offering, Singapore's AnAn Group, a strategic
partner of China's CEFC, agreed to purchase global depository
receipts (GDRs) during the IPO for $500 million, En+ said in its
statement.
En+ plans to use the primary proceeds from the offering to
repay a portion of its debt.
En+ is offering its shares three months after Russia's
largest gold producer, Polyus PLZL.MM raised more than $800
million in a secondary public offering in London and Moscow.
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(Reporting by Polina Devitt; editing by Dmitry Solovyov)
((Polina.Devitt@thomsonreuters.com; +7 495 775 12 42; Reuters
Messaging: polina.devitt.reuters.com@reuters.net))
Keywords: RUSSIA EN+/IPO