Usmanov’s Metalloinvest Said to Be Planning Ipo in London

MOSCOW. May 20 (Interfax) – Alisher Usmanov’s iron and steel holding Metalloinvest is planning an IPO, probably on the London Stock Exchange, in October, a banking source told Interfax.

The source said Merrill Lynch, Credit Suisse, Deutsche Bank and Renaissance Capital could arrange the offering, however mandates have not yet been issued.

Metalloinvest itself declined to comment.

Tuesday’s Vedomosti newspaper said Metalloinvest would offer 10% of its shares to investors and that existing shareholders would place another 15%. Interfax’s source said that Metalloinvest was planning to place up to 25% of its shares, but had not yet decided on the ratio of primary to secondary shares.

Analysts value Metalloinvest at between $25 billion and $30 billion. Metalloinvest’s shareholders expect an IPO to value the company at more than $30 billion by virtue of rapid growth for iron ore prices, Vedomosti said.

Metalloinvest’s chief assets are iron ore producers Lebedinsky GOK (RTS: LGOK) and Mikhailovsky GOK (MGOK) and steel producers Oskol Electrometallurgical Combine (OEMK) (RTS: OAMK) and Urals Steel.

Metalloinvest’s beneficiaries also include Andrei Skoch and Valery Anisimov.

It emerged in February this year that Metalloinvest had entered into negotiations with MMC Norilsk Nickel (RTS: GMKN) regarding a possible tie-up. Oleg Deripaska’s United Company RUSAL (UC RUSAL) bought a blocking stake in Norilsk from the latter’s co-owner, Mikhail Prokhorov, in April.

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