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. Last Updated: 07/27/2016

Strabag Plans $1.8Bln Listing This Month

VIENNA -- Austrian builder Strabag plans to sell shares worth up to 1.3 billion euros ($1.8 billion) in an initial public offering this month, hoping to tap investor appetite for companies doing business in Russia.

A spokeswoman for the company confirmed a media report last week saying the IPO would kick off on Oct. 8 and run through Oct. 18, with trading due to start Oct. 19. The company hopes the IPO will be three times oversubscribed, she said.

The deal is the third major share sale by an Austrian company focused on emerging Europe to be announced in 10 days, after rights issues from Raiffeisen International and brick maker Wienerberger, which are both under way.

Investors said Strabag's Russian business, boosted by billionaire Oleg Deripaska buying a 30 percent stake in Strabag in April and by new deals signed in May, was the main reason why the IPO was likely to be a success.

"They can certainly tell a good story with the whole Russian potential coming from the Deripaska stake, so this [IPO] should definitely be possible," said Walter Harecker, a fund manager at Austria's Constantia Privatbank.