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23 Oct, 2017 13:34

First Russian IPO in London since sanctions to test Western investor sentiment

First Russian IPO in London since sanctions to test Western investor sentiment

Russian metals tycoon Oleg Deripaska would like to see a valuation of at least $8.5 billion for his aluminum and hydrocarbon business in the first Russian IPO in London since 2014.

The EN+ listing will test investor sentiment toward a major Russian company since relations between the Kremlin and the West deteriorated. The company is planning to raise $1.5 billion for 18 percent of its shares in the IPO in November and has priced the shares at $14 to $17. The $8.5 billion valuation would put En+ among Russia’s 30 biggest public companies.

"After we announced our intention to enter the IPO on October 5, we felt a surprisingly high level of interest in investing in the En+ Group, and we are happy to move on to the next stage of our proposal - the announcement of the price range," said Maksim Sokov, CEO.

The En+ IPO will be the first placement of a Russian company on the stock exchange in London since the introduction of sanctions against Russia in 2014.

Citigroup, Credit Suisse, JPMorgan, Merrill Lynch, Sberbank and VTB Capital are co-ordinating the listing.

Revenue of En+ in the first half reached $5.8 billion, up 23 percent compared to the same period last year.

The primary owner of En+ is Deripaska, who owns 95.65 percent of its shares. Forbes estimates his fortune at $5.1 billion. The other 4.35 percent of the holding belongs to VTB Capital.

A part of the funds raised through the IPO will be used to fully repay the company’s debt to VTB, which stood at $942 million at the end of June, according to business media RBC.