Russian state banks saved Oleg Deripaska from collapse on the London Stock Exchange

Sberbank and VTB bought out part of the shares of En + holding Oleg Deripaska during the IPO on the London Stock Exchange in early November.
17.11.2017
Origin source
Against the backdrop of low interest of retail investors, Sberbank purchased the En + package, through which Deripaska owns a controlling stake in RusAl, the Krasnoyarsk Metallurgical Plant and power plants in Siberia, about $ 100 million, Bloomberg reported on Friday with reference to informed sources.

Another part of the shares put up for sale was purchased by VTB. The sources of the agency do not specify the size of its investments.

The primary public offering of the raw and energy company of billionaire Deripaska became the largest Russian IPO in more than four years: investors were offered global depository receipts at a price of $ 14 to $ 17 apiece.

The placement took place at the lowest possible price: the whole company 7 billion dollars in monetary terms (before the IPO).

En + itself counted on an estimate of more than $ 1.5 billion, recalls Bloomberg. The Russian investment companies also hoped for more: BCS estimated the holding of Deripaska at $ 10 billion and predicted the sale of shares on the upper boundary of the price band.

Directly on the market, the company was able to attract less than a third of the total amount. The largest buyer was the Chinese An An Group, which invested almost $ 500 million. Another 250 million brought Qatar sovereign investment fund QIA. From Capital World Investors came $ 100 million.

Large shares were concentrated in the hands of several investors, said analyst of BCS Global Markets Oleg Petropavlovskiy. That is why trading in stocks is sluggish - both the number of transactions and the money turnover remain low.

Investors are looking for investors Russian billionaire, burdened with multi-billion debts, "Rusal", led since the beginning of the year. Initially, it was planned to sell 20% of the shares for $ 2 billion, but as a result, the amount had to be reduced. Placing hoped to spend the summer, but the plans confused the collapse of the Russian market, sources told Bloomberg.

Money is needed for En + to reduce the debt burden, Bloomberg reported referring to the company's CEO Maxim Sokov. The net (that is, not covered by cash reserves) debt of the key asset of the holding - the aluminum giant "Rusal" - by early 2017 was $ 6.5 billion.