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MOSCOW, Nov 3 (Reuters) - Russia's En+ Group, which manages tycoon Oleg Deripaska's aluminium and hydropower businesses, priced its global depositary receipts at $14 in an initial public offering (IPO) on Friday, at the lower end of its guided range.
The IPO of En+ in Moscow and London is the first major primary equity raising by a Russian company in Britain since Western sanctions were imposed on Russia over its role in the Ukraine crisis. En+ and Deripaska are not under sanctions.
En+ said its post-money market capitalisation amounted to $8 billion and the offering would raise a total of $1.5 billion. AnAn Group, a partner of China's CEFC, invested $500 million in the company's GDRs, EN+ said in a statement.
"En+ Group's offering is the largest initial public equity offering by a Russian company since 2012 and constitutes one of the largest IPOs on the London Stock Exchange," En+ chief executive Maxim Sokov said in a statement.
The price range was set at between $14 and $17 per GDR.
It did not say why the offering was closed at the lower end of the initial guidance.
On Friday, En+ reiterated that IPO would allow it to repay a portion the debt. It has said earlier that it would repay the bulk of the debt to the state bank VTB.
En+ owns assets in metals and energy, including a 48 percent stake in Hong Kong-listed aluminium producer Rusal, which is a big consumer of hydroelectricity produced by companies owned by En+.
On Friday, En+ said it had signed a non-binding deal with Glencore in which the trading firm would convert an 8.75 percent stake in Rusal to a stake in En+. The deal is due after the IPO, allowing En+ to increase its stake in Rusal to 56.88 percent.
En+ did not say who else invested into its IPO. Financial market sources told Reuters on Thursday that Qatar, Russian Direct Investment Fund along with its partners as well as U.S. Capital Group had put bids during the IPO. (Reporting by Maria Kiselyova and Katya Golubkova; Editing by Maria Kiselyova and Edmund Blair)