DEALTALK-Russian and CIS IPOs could reach $20 bln in 2008

(For more Reuters columns on deals click on [DEALTALK/])

By Daisy Ku and Eleanor Wason

LONDON, July 7 (Reuters) - Russian and CIS IPO activity slumped in the first half due to elections in Russia and global market turmoil but bankers hope a resurgence in the second half will boost full year issuance volume to $20 billion.

Activity for Russia and members of the Commonwealth of Independent States (CIS) dropped 93 percent to $1.1 billion in the first six months of the year as just six companies listed, including firms from Ukraine and Kazakhstan, according to consultancy firm PBN.

But bankers hope encouraging performances by some of the recently listed companies and strong economic growth in the region bode well for planned share sales of Metalloinvest, Mechel Mining and United Company RUSAL in the fourth quarter.

"There was a window in May and I hope there will be a window in October and November," said a London-based equity capital markets banker.

Natural resources companies are booming thanks to strong demand for raw materials in emerging markets, particularly in Asia.

With steel prices in Russia setting new record highs every month since January, the country's biggest iron ore producer and one of its leading steel groups, Metalloinvest, is heading for a London listing around November.

The company, owned by billionaire Alisher Usmanov, and its shareholders could sell 25 percent of share capital for as much as $8 billion in a deal arranged by Merrill Lynch MER.N, Credit Suisse (CSGN.VX: Quote, Profile, Research), Deutsche Bank (DBKGn.DE: Quote, Profile, Research) and Renaissance Capital, sources close to the matter said.