October 6, 2017 / 8:17 PM / 8 months ago

VTB Capital values Russia's En+ at $9 bln-$12 bln ahead of IPO

    MOSCOW, Oct 6 (Reuters) - VTB Capital, a coordinator of the
planned initial public offering of Russia's En+ has valued the
group's total equity at between $9 billion and $12 billion,
according to a VTB report obtained by Reuters.
    En+ Group, which manages Russian tycoon Oleg Deripaska's
aluminium and hydropower businesses, is planning an initial
public share offering (IPO) in London and Moscow. 
    It has not said how much of its equity it plans to float but
has said it hopes to raise $1.5 billion from the offering.
    The listing will be the first major IPO of a Russian company
in London since 2014, when the West imposed sanctions on Russia
over its actions in Ukraine, and is seen as a test of investor
appetite for Russian assets.    
    En+ and VTB Capital declined to comment. 
    Sberbank SIB, another of the coordinators, has separately
prepared several different scenarios to investors that would
determine how it values En+, according to two financial market
    The sources told Reuters that the scenarios outlined
suggested Sberbank CIB was leaning toward a fundamental value 
of En+ of around $10 billion.
    However, Anton Malkov, Sberbank CIB managing Director, told
Reuters that the bank had not set a definite value on the
    "The assumption that Sberbank CIB is valuing the company at
around $10 billion is incorrect," he said.
    "The base amount of the transaction totalling $1 billion has
been recorded, while it is the market that will determine the
equivalent in terms of the percentage of the charter capital,"
he added.
    The base amount of the deal mentioned by Malkov does not
include Singapore's AnAn Group, a strategic partner of China's
CEFC, which agreed to purchase global depository receipts (GDRs)
during the IPO for $500 million.             
    The IPO will be split between new and existing shares. 
    Along with VTB Capital and Sberbank SIB, other global
coordinators and bookrunners for the deal include Citigroup,
Credit Suisse, JP Morgan and Merrill Lynch.
    BMO Capital Markets, Gazprombank, Societe Generale and UBS
are acting as joint bookrunners, while Atonline is acting as
MOEX bookrunner of the offering.

 (Reporting by Olga Popova, Anastasia Lyrchikova and Polina
Devitt; Writing by Polina Devitt; Editing by Katya Golubkova and
Susan Fenton)
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