Billionaire Deripaska’s En+ Group Said to Plan an IPO in 2017

  • Rusal’s biggest shareholder may IPO in London, Hong Kong
  • En+ Group could seek valuation up to $12 billion, people say

En+ Group Ltd., the commodity business controlled by Russian billionaire Oleg Deripaska, is considering going public next year amid a recovery in the industry, according to people familiar with the matter.

The group, whose largest assets include a 48 percent stake in aluminum maker United Co. Rusal and utility company EuroSibEnergo OJSC, is meeting advisers to evaluate a sale in markets including London and Hong Kong, the people said, asking not to be named as the details aren’t public. En+ could seek a valuation of $10 billion to $12 billion, they said.

Oleg Deripaska

Photographer: Simon Dawson/Bloomberg

No final decision has been made and the group may decide not to go ahead with the offering, the people said. A representative for En+ declined to comment.

En+, whose other assets include coal mines in Siberia, had considered an IPO in Hong Kong in 2012, but decided against it amid a European debt crisis followed by a crash in commodities prices. Valuations for most metals and other raw materials recovered this year with aluminum gaining more than 14 percent, while coal prices doubled.

“En+ IPO looks quite real in the first half of 2017 as commodities prices are seen staying high before correction," said Oleg Petropavlosvkiy, a senior analyst at BCS Global Markets in Moscow. "Depending on the situation in the market, En+’s business could be valued at about $9 billion."

Diamond miner Alrosa PJSC raised $1.3 billion in 2013, in what marked Russia’s biggest share sale of a metals and mining company, according to data compiled by Bloomberg. Companies in Russia raised $700 million from two IPOs this year.

En+ last disclosed earnings for 2014, reporting $11.9 billion of revenue and $2.2 billion in profit before interest, taxes, depreciation and amortization.

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