Sources claiming familiarity with the matter told Reuters late last week that En+ Group may debut its initial public offering (IPO) as soon as this Thursday.
En+ Group is owned by Russian Federation metals magnate Oleg Deripaska and owns a controlling interest in UC Rusal. The firm also owns EuroSibEnergo, which is the Russian Federation’s largest independent power producer, and has significant ferromolybdenum and coal assets.
The unnamed sources told Reuters that an “intent-to-float” announcement is currently in the works. The announcement, which typically kicks off the marketing phase of an IPO, may still encounter delays before a final go-ahead is given, according to the source.
Reuters learned from anonymous sources this spring that the initial valuation of the business could top US$10 billion. Deripaska said a few months later that En+ hopes to raise in the neighborhood of US$1.5 billion from an IPO in London.
However, according to sources that spoke to Reuters, the target is now set at US$1 billion.
Another set of sources told Reuters earlier this month that energy conglomerate CEFC China Energy Company Limited was eyeing purchasing stock in En+ in the event of an IPO.
For its part, representatives of En+ offered no comment on the rumors.
Founded in 2006, En+ is registered in Saint Helier, Jersey, but operates from headquarters in Moscow. The firm employs about 100,000 individuals. In addition to its controlling interest in Rusal, En+ is the parent company of EuroSibEnergo (owner of hydroelectric producer Irkutskenergo), and leading ferromolybdenum producer SMR. The firm also owns aluminium value-added firm En+ Downstream and En+ Coal, which has assets across eastern Siberia and provides coal for En+’s power plants.