Off The Wire
Duo sell down Rusal stakes
HONG KONG, Oct 12 (IFR) - Russian tycoons Mikhail Prokhorov and Viktor Vekselberg have raised a total of HK$2.46bn (US$315m) from sell-downs of their interests in dual-listed Rusal.
The Russian aluminium producer is listed in Hong Kong and Moscow.
The offer of 456m shares, or about 3% of Rusal's equity capital, was priced at the bottom of an indicative price range of HK$5.40-$5.55 each. The final price represents a discount of 7.5% to the pre-deal spot.
The deal was well covered with about 70 investors participating. Allocation was very concentrated as the top 10 investors took about two-thirds of the shares. There was mixed demand from international and Russian investors.
Prokhorov sold 0.7% in Rusal and Vekselberg sold 2.3%, reducing their stakes in the company to 6.0% and 20.5%, respectively.
There is a 90-day lock-up on the pair. Goldman Sachs and Renaissance Capital were the joint bookrunners.
(Reporting by Fiona Lau)