United Co. Rusal, the Russian aluminum conglomerate, is seeking to raise $2.6 billion in an initial public offering in the Hong Kong Stock Exchange.
Rusal, which is led by Russian billionaire Oleg Deripaska, plans to sell more than 1.6 billion shares at a price between 12.50 Hong Kong dollars ($1.61) and HK$9.10, according to the filing with Hong Kong's stock exchange. The potential proceeds range from $1.9 billion to $2.6 billion.
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The IPO will make Rusal the first Russian company on the Hong Kong Stock Exchange.
Nathaniel Rotschild’s NR Investments and John Paulson’s Paulson & Co. are reportedly among the initial cornerstone investors, along with Asian tycoon Robert Kuok. Paulson and Rothschild, who has been chosen as the financial adviser of the offering, have pledged to buy nearly 0.5 percent of Rusal each.
BNP Paribas and Credit Suisse will serve as the IPO's joint sponsors and global coordinators. Bank of America-Merrill Lynch, BOCI, Nomura, Renassiance Capital, Sberbank and VTB Capital are the underwriters.
Earlier this month, Rusal reached a restructuring deal with creditors to repay its $16.8 billion borrowing within seven years. In a separate agreement, billionaire Mikhail Prokhorov acquired 6 percent in Rusal in exchange for taking on $1.7 billion of the company's debt, reducing Rusal's liabilities to $15 billion.
State-owned bank VEB, which gave Rusal a $4.5 billion emergency loan early this year, says it will buy 3 percent out of the 10 percent on offer. State-controlled Sberbank and VTB are buying roughly 1 percent each.
Rusal recorded a $15.7 billion profit in 2008 and $3.8 billion for the six months ended June 30, according to the filing. Rusal's pricing will take place on Jan. 22 and it will be listed on Jan. 27.
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