Russia’s Koks prices its IPO

City A.M. Reporter
RUSSIAN coking coal and pig iron producer Koks will seek to raise around $520m (£325m) in its IPO, landing a windfall for its owners and kick-starting a stampede by Russian firms to the stock market.

The Siberia-based company, which is planning to list existing shares in both London and Moscow, said the offering could make up at least 20 per cent of its stock and would be priced at $6.25-$8.00 a share, valuing the company at $2.6bn.

Koks is one of four Russian firms expected to begin bookbuilding in London this week in a bumper start to the year for Russian company IPOs that could raise a combined $3bn -- over half the total raised in the whole of 2010.

Russia’s biggest sugar producer Rusagro is also reviving plans for an IPO after market volatility caused it to postpone its last attempt in May 2010.

Rusagro’s IPO could also take place in London -- further evidence the British capital has emerged as the favourite destination for Russian private companies.

Analysts have said Russian companies could raise around $30bn in 2011 given the right market conditions, up from $5.5bn in 2010.

Koks is owned by resources tycoon Boris Zubitskiy and his two sons, who the company said would keep all the proceeds from the sale of their shares in the IPO.

The group said around 12.1 per cent of the overall shares would be sold by the Zubitskiys -- netting the family a windfall of over $300m based on the expected income.

Koks will also sell treasury shares -- the cash raised from which will be invested in the company.