The board of Russian aluminium company UC RUSAL has set a price range for its Hong Kong IPO valuing the company at between $16 billion and $22 billion, Vedomosti daily said on Friday, quoting banking sources.
The sources also told Vedomosti that BlackRock as well as sovereign wealth fund China Investment Corporation (CIC) would take part in the IPO, which is off limits for ordinary investors. The daily said the deal is expected to close by January 20.
The paper said UC Rusal would split the existing 13,500 shares into 1.35 billion shares ahead of the offering, suggesting the price per share would be at $13.7-$18.9, according to the proposed price range.
The proposed valuation, based on recommendations of the IPO organisers, would make UC RUSAL the world's most expensive aluminium company. The market capitalization of its competitor Alcoa stood at $15.6 billion, according to Reuters data.
Vedomosti said UC RUSAL plans to start pre-marketing on Jan. 5 and its roadshow on Jan. 11. Russian state bank VEB, which bailed out the indebted firm last year, plans to buy nearly a third of the 10 percent of shares on offer.