En+ Group has priced its $8.5bn London float

 
Courtney Goldsmith
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En+ manages Russian billionaire Oleg Deripaska’s aluminium and hydropower businesses
En+ manages Russian billionaire Oleg Deripaska’s aluminium and hydropower businesses (Source: En+)

Russian energy firm En+ Group has set a price range for its initial public offering (IPO) in London and Moscow next month that values the company at as much as $8.5bn (£6.4bn).

The indicative price range for the float was set at between $14 and $17 per global depositary receipt, implying a pre-IPO market value of between $7bn to $8.5bn.

En+, which manages Russian billionaire Oleg Deripaska’s aluminium and hydropower businesses, said the offering is expected to represent between 15.8 per cent and 18.8 per cent of the issued share capital, excluding the over-allotment option.

The company plans to raise $1bn from the offer by selling new shares. It also includes a $500,000 cornerstone investment from China's AnAn Group.

Chief executive Maxim Sokov said the group was "delighted" with the level of interest it had received.

The group is in an excellent position to begin its roadshow today, and we look forward to meeting with investors to brief them on our unparalleled strengths as a leading international vertically integrated aluminium and power producer.

Last week, En+ named former UK energy minister Lord Barker as its chair, which Sokov said will strengthen the company's "ongoing commitment to high standards of corporate governance".

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

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