Intergeo MMC Ltd. (0419650D), a mining company controlled by Russian billionaire Mikhail Prokhorov, hired Morgan Stanley (MS) and BMO Capital Markets Corp. to organize an initial public offering of shares in Canada.
Intergeo registered a preliminary prospectus with regulators, the company said yesterday in a statement. The number of shares and price will be set later, Intergeo said.
The company will sell a stake as large as 10 percent and may raise $100 million to $500 million, said a person familiar with the situation who declined to be identified because the details haven’t been made public. The IPO isn’t certain to proceed because of market volatility, the person said.
Prokhorov kept some mining licenses after selling his stake in OAO Norilsk Nickel, Russia’s largest metals producer, in 2008. At the time, he pledged to form a global mining company from scratch to rival Norilsk, with potentially $10 billion of investment in five years. The Intergeo venture planned to sell shares in Toronto, Maxim Finsky, a partner in the project, said in June.
Intergeo plans to focus on developing the Ak-Sug copper and Kingash nickel projects, both in southern Siberia, according to the company’s IPO prospectus. Ak-Sug holds 1.8 million tons of copper resources, while Kingash contains 310,000 tons of nickel, the document shows.
Andrey Belyak, a spokesman for Prokhorov’s Onexim Group, declined to comment.