Russia's En+ launches IPO in London and Moscow

Courtney Goldsmith
Follow Courtney
En+ owns aluminium and hydropower assets
En+ owns aluminium and hydropower assets (Source: En+)

Russia's En+ Group plans to float on the London and Moscow stock exchanges in a $1.5bn (£1.1bn) listing.

En+, which is owned by Russian aluminium tycoon Oleg Deripaska, has assets in metals and energy, including hydropower.

The firm aims to raise $1.5bn, of which $1bn is expected to be primary proceeds from the initial public offering (IPO). Another $500m of global depository receipts will be purchased through a cornerstone investment by AnAn Group, a strategic partner of CEFC China Energy.

Read more: London Stock Exchange boosted by largest Russian IPO of 2017

En+ plans to use the primary proceeds to repay some of its debt.

The admission to the London market will take place in November, and it will be a welcome boost to London's IPO pipeline which has slowed since the Brexit vote.

The IPO also comes just a few months after Russia's largest gold producer, Polus, returned to London's main market after a two-year absence, raising $879m.

Maxim Sokov, chief executive, said:

We are pioneering the renewable energy and clean metals model, and a successful IPO would deleverage the group and provide an opportunity to enhance our platform.

AnAn Group's participation in the offering as a cornerstone investor is a clear testament to the strength of our investment case, the group’s excellent prospects and the potential for greater cooperation between our two companies going forwards.

Sokov added that the company was pleased to be listing in London, which it believes will further increase its international profile.

"Looking ahead, we are confident that we can create real value for all shareholders, deliver strong growth and pay an impressive dividend."

Read more: BP partner Kosmos Energy lists on the London Stock Exchange

Related articles