MECHEL looks set to be the next blue-chip Russian firm to list on the London Stock Exchange.
The group – one of Russia’s biggest steel miners – is understood to be in the early stages of planning a flotation of around a quarter of its mining subsidiary to raise up to £2.5bn.
The deal could value the division at more than £10bn. The steel business, which mines more than 6m tonnes of the metal a year, is one of four Mechel segments, the others comprising of mining, ferroalloys and power.
It is thought the fundraising will be used to bankroll a major metal-industry acquisition.
The group’s subsidiaries are located in 12 regions of Russia, Kazakhstan, USA, Romania, Bulgaria and Lithuania.
Russian investment bank Renaissance Capital and Morgan Stanley have been hired as advisers.
Mechel follows Russian firm Phosagro’s flotation on the LSE earlier this month.