Report: Russia’s Sibur close to making decision on IPO

MOSCOW, Aug 27 (PRIME) -- Russian petrochemical company Sibur will decide on an initial public offering (IPO) at the end of September, the Financial Times reported on Monday, citing sources with knowledge of the situation.

The company is in negotiations to offer a 10–15% stake, most of which belongs to Leonid Mikhelson, to raise U.S. $2–2.5 billion, two sources said, adding that the company could be valued at $20 billion.

“It may happen this year. The proposal is being internally studied in the next few weeks. And then they will decide what to do,” one of the sources said.

According to three market sources, JP Morgan, Citi, Goldman Sachs and Gazprombank can organize the offering.

Mikhelson owns a 48.5% stake in the company, including 14.4% in trust management of Gazprombank and 34.08% owned by Mikhelson’s Trust. Gennady Timchenko holds 17% in Sibur, the executives about 14.5%, China’s Sinopec 10% and the Silk Raod Fund 10%.

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