Russkaya Mednaya Kompaniya (RMK), Russia's third largest copper maker, plans to sell 20-25 percent of its stock in an initial public offering in London to raise $900 million-1.2 billion, Kommersant business daily reported on Friday citing sources close to the deal and company management.
The offering will consist of RMK's existing stock owned by its parent firm Russian Copper Company Ltd, and new shares in equal proportions, two sources told the paper. Deutsche Bank and Credit Suisse will lead the IPO scheduled for the third quarter.
The company intends to use the capital to boost copper production to 205,000 tons in 2011 from 180,000 tons in 2010 and to double production capacity by 2015.
The firm hopes to increase EBITDA to $600 million in 2011 from $360 million in 2010 and to reach $1.5 billion by 2015.
If RMK implements its investment plans, it may could the leader of the Russian copper market. In 2010, Norilsk Nickel produced 365,700 tons of the metal, although it has recently announced plans to build a 400,000 ton smelter in Indonesia. Ural Mining and Metallurgical Company produced about 360,000 tons last year.
MOSCOW, May 20 (RIA Novosti)
