HONG KONG, Jan. 12 -- United Company RUSAL (UC RUSAL), the world's largest aluminium producer, kicked off its up to $2.6 billion Hong Kong and Paris IPO marketing road show on Monday, setting the minimum entry requirement for investors.
Moscow-headquartered RUSAL set the minimum entry level for professional investors buying into the company at HK$1 million (US$129,000), according to the term sheet sent to investors.
UC RUSAL, which is the first-ever Hong Kong-Paris dual listing, is selling 1.6 billion shares at a range of HK$9.10 to HK$12.50 per share. RUSAL is selling 10.6 percent of the company to the public, and has been banned by Hong Kong regulators from selling the IPO to individual retail investors.
"The deal has attracted high-quality institutional investors," a source familiar with the deal said.
The offer price values UC RUSAL at 10.6 to 13.3 times 2010 basis EV/EBITDA and means the company values itself at up to $26 billion.
By comparison, peers Aluminum Corp of China Ltd (2600.HK: Quote) (601600.SS: Quote) trades at 11.2 times 2010 basis EV/EBITDA, while U.S.-based Alcoa (AA.N: Quote) trades at 11 times, according a Merrill Lynch research report.
The IPO has attracted a list of big name investors, including Nathaniel Rothschild's company, U.S. hedge fund Paulson & Co, Malaysian-Chinese businessman Robert Kuok Hock Nien, and Russian state bank VEB.
BNP Paribas (BNPP.PA: Quote) and Credit Suisse (CSGN.VX: Quote) are the joint sponsors and global coordinators. The joint bookrunners are BofA-Merrill (BAC.N: Quote), BOC International, Nomura Holdings (8604.T: Quote), Renaissance Capital, Sberbank and VTB Capital, with Rothschild acting as financial advisor.
RUSAL will trade under the symbol 0486 (0486.HK: Quote) in Hong Kong.