Sibanthracite Plc, a producer of coal in southwestern Siberia, plans to list a stake as large as 25 percent in London in what would be the first Russian initial public offering in the U.K. this year.
The selling shareholder is the GLG Emerging Markets Growth Fund, Novosibirsk-based Sibanthracite said in a statement today. A fifth of the offered shares, sold as global depositary receipts, will be reserved for investors in the fund, it said.
The company mines high-grade anthracite for export to metals producers. It is developing five open-pit mines and has the capacity to produce about 5 million metric tons of anthracite a year, with a target of 9.5 million tons in 2017, according to its website. The sale may value Sibanthracite at $1.4 billion, said Alexei Morozov, a UBS AG analyst.
“The anthracite market is in much better shape compared with coking-coal, as the product is unique,” Morozov said by phone today in Moscow. “Given this the whole company may be easily valued at about $1.4 billion in an IPO.”
George Buzhenitsa, a Deutsche Bank AG analyst, said the valuation may be lower. Anthracite prices are following the decline in coking coal this year, which will dent the value of the planned IPO, he said. “It would be hard for Sibanthracite to reach a valuation of $1 billion,” he said.
External spokesmen for Sibanthracite declined to comment.
Sibanthracite produced 4.2 million tons of anthracite last year, generating revenue of $508 million. Earnings before interest, taxes, depreciation and amortization were $194 million in 2012 with net income of $117 million, today’s statement shows. It’s key customers are steelmakers in the Pacific region, Europe and India, according to the website.
The GLG fund became a Sibanthracite shareholder in early 2008 when the Alltech Group controlled by entrepreneur Dmitry Bosov sold a quarter of the company to the unit of GLG Partners.
JPMorgan Chase & Co., Morgan Stanley, Raiffeisen Bank International and Sberbank CIB are organizing the sale, according to the statement.