Russian En+ valued at $7-$8.5bn ahead of IPO

Russian En+ valued at $7-$8.5bn ahead of IPO
En+'s assets include a 48% stake in one of the world's largest aluminium producers – Hong Kong-listed Rusal. / Rusal.
By bne IntelliNews October 24, 2017

Russian energy and metals major En+ is valued at $7-$8.5bn ahead of the highly anticipated IPO in London, the company said at the London Stock Exchange on October 22.

En+ is expected to offer 15.8-18.8% in the offering at the price range of $14-17 per GDR. Previous reports claimed that the tycoon Oleg Deripaska seeks to raise $1-$1.5bn for his asset in the offering that could anchor such investors as China's CEFC and Qatar's QIA.

The roadshow and the book for the offering will be over by the end of November. It is not clear how the 95.65% stake of structures of Deripaska will change after the deal. 

Another 4.35% in En+ is held by Russia's second-largest bank VTB Bank, but reportedly En+ told investors that VTB could sell its stake, Interfax said on October 23. The bank acquired the stake in 2011 for $500mn and could lose $150-200mn on the investment.

Vedomosti daily said on October 23 that Deripaska's wife Polina Deripaska owns 6.9% in En+, while noting that the spouses have no legal marriage contract. Another Russian metallurgy tycoon Vladimir Potanin has been embroiled in a painful asset split when divorcing Natalya Potanina.

En+ is a major energy player owning assets in metals and generation assets, including a 48% stake in one of the world's largest aluminium producers – Hong Kong-listed Rusal.

It was also reported that oil trader Glencore plans to change the 8.75% it holds in aluminium producer Rusal for GDRs of En+. This would mean that En+ would consolidate a stake in its anchor asset from 48.13% to 56.88%.

En+ estimated its adjusted Ebitda in the first half of 2017 rose by 44% year-on-year to $1.5bn. Net debt of the company amounts to about $5bn, and the funds raised at the IPO would be used to refinance it.

Related Content

News

Dismiss