Deripaska plans second IPO for 2010

OLEG Deripaska, chief executive officer of Rusal, is planning an initial public offering of his power company, Eurosibenergo.

The IPO is expected to take place in Hong Kong, where the Russian billionaire listed Rusal, the aluminium producer, in January this year. Since the flotation shares have tumbled 20 per cent and many in the City have questioned his decision to turn his back on London.

But the Russian oligarch was defiant about the company’s early performance. “Today’s price is reasonable,” he told reporters at the stock exchange. “You have seen what has happened with the financial situation in recent days.”

Mr Deripaska's holding vehicle, EN+ which listed Rusal, is taking charge of the Eurosibenergo flotation. Eurosibenergo comprises a number of power stations in Siberia that power Rusal’s smelters. It is Russia’s second largest electricity producer, accounting for more than eight per cent of production.

The financial climate for IPOs is currently poor and the recent failures of New Look, Merlin Entertaintments and Travelport have caused tremors in the financial markets. However, analysts remain positive about the longer-term future for IPOs.

Tom Ahearne, European head of equity syndicate and origination at Credit Suisse said: “The fact that investors are reticent about stepping into a howling gale for fear of the apparent cold is completely understandable. However, there are good reasons for optimism and ... that 2010 will be a healthy year.”

● EuroSibEnergo is Russia's largest privately owned power company.

● Among its power stations are Krasnoyarsk and Bratsk hydroelectric power plants, which are among the top ten largest in the world.