Actuality January, 4, 2008

In 2008-2010 IPO of the following companies in the metallurgy sphere and mining sector is expected: MBC Resources, OJSC Inprom, Metalloinvest Holding, Mechel (coal segment), Russian Copper Company, VSMPO-AVISMA Corporation.

Russian Metropol Group that develops large deposits of zinc and lead in the east of Siberia, in 2008 plans IPO of 15-20% shares of MBC Resources subsidiary. The company intends to offer securities on the stock exchanges of Moscow, London and Tokyo, because, according to Director General, the main consumers of company products will be non-Russian enterprises, but Japanese and Chinese ones. The company intends to attract $200 mln.

OJSC Inprom (Taganrog) decided to put off IPO hold planned for December, 2007, till spring, 2008. The press-service representative explained that the reason of IPO postponement for the later term is an unfavorable economic situation that has arisen on world financial markets. Trust Investment Bank and Raiffeisen Zentralbank Österreich AG (RZB) will become the managers of the initial offering. The company intends to attract $60 mln.

Metalloinvest Holding plans to hold IPO at the end of 2008. “We will likely hold IPO at the end of 2008 or little later. Moreover, we think about using such instruments as Eurobonds before IPO”, reported Maksim Gubiev, Director General of Metalloinvest Holding.

Mechel Group would separate coal mining segment into the independent company in 2008 and will hold its IPO on one of the western stock exchanges, selling 20-30% stocks. Analysts estimate the cost of new structure at $5,5-7,5 bln. Information that Mechel Group plans to hold IPO of its coal mining segment in Canada, appeared after the visit of Group delegation headed by the main shareholder and Director General Igor Zyuzin to the Toronto Stock Exchange (TSX). The company intends to attract $2 bln.

JSC Russian Copper Company (RMK) plans to enter IPO in 2008-2010. The company intends to attract $1,5 bln. Also in 2008 RMK intends to offer the second ruble bond issue of RUR 5 bln volume with 5 year maturity. Alfa Bank is the manager of the issue. Guarantors are JSC Russian Copper Company, Kyshtym Copper-Electrolyte Plant, Ltd., Ormet, Ltd., Novgorodsky Metallurgichesky Zavod, Ltd.

VSMPO-AVISMA Corporation can hold the initial public offering of shares in 2009-2010 and on a foreign stock exchange, reported Sergey Chemezov, the head of Rostecnology public corporation on December, 27. According to him, the volume of shares’ offering is not determined yet; however, it is possible that after IPO the state share in VSMPO-AVISMA will reduce from controlling to blocking one. Earlier, former majority shareholders of titanic corporation Director General Vladislav Tetyukhin and former chairman of board of directors Vyacheslav Bresht repeatedly declared about intention to hold IPO. At first it was planned for the first half of 2006, than – for 2007.