13 Nov 2010 12:09

EuroSibEnergo to price IPO Dec 13 - source

MOSCOW. Nov 13 (Interfax) - EuroSibEnergo, a member of the En+ Group, which runs the power sector assets of Oleg Deripaska's Basic Element, will close the bid book for its IPO on December 10 and price the offering three days after that, a source familiar with the company's IPO schedule told Interfax.

A source told Interfax on November 10 that investor education meetings would be held next week.

The source said the company expected to hold the IPO in Hong Kong by the end of this year and to raise $1.5 billion by selling 25% of the shares. The source said the company would be valued at $6 billion post-IPO.

Deutsche Bank, Bank of China International and VTB Capital are arranging the IPO.

Reports have said the company was originally planning to list in H1 2010, but decided to wait due to the deterioration in the equity markets.

EuroSibEnergo values itself at $8 billion post-IPO, sources said following a meeting with investors in August.

The company became a platform to consolidate Oleg Deripaska's power and engineering business in 2009.

Its biggest assets are controlling stakes in Irkutskenergo, which includes coal producer Vostsibugol; Krasnoyarsk Hydro and a number of sales and engineering companies. EuroSibEnergo controls 14 power plants with installed capacity of 19.5 gigawatts - more than 15 gigawatts of this at hydro-plants - and coal deposits with reserves of approximately 1.2 billion tonnes of coal. EuroSibEnergo has a Russian electricity market share or approximately 10%.

EuroSibEnergo's sales revenue to International Financial Reporting Standards (IFRS) was just over 76.2 billion rubles in 2009, according to preliminary data.