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. Last Updated: 07/27/2016

First Coal Firm's IPO Raises $317M

Raspadskaya raised $317 million in the first public offering by a Russian coal company on Friday, valuing the country's No. 2 producer of coking coal used for steelmaking at $1.76 billion.

Raspadskaya, part-owned by steelmaker Evraz Group, placed 18 percent of its shares in Moscow at $2.25 each, the middle of its indicative offer range. The IPO attracted demand for double the amount of shares on offer, bankers involved in the deal said.

Raspadskaya's high price relative to its earnings and lack of diversified assets, which exposes it to domestic coking coal prices that have fallen 20 percent from last year's peak, make the company a risky bet as more coal mines prepare to start operation, analysts said.

"Raspadskaya, based on trading multiples, is the most expensive company in Russia among the blue chips," UralSib analyst Kirill Chuiko said.

Three fund managers said they had declined to participate, despite potential growth in the country's coal sector, as they believed Raspadskaya's valuation was too high.