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. Last Updated: 07/27/2016

Inprom Plans IPO In October

Steel stockholder Inprom intends to raise $70 million to $90 million floating 30 percent of its shares in Moscow by the end of October and plans a second listing in London within two years, its main owner said late Wednesday.

Igor Konovalov said 25 percent of the shares to be listed on the RTS and MICEX exchanges would be new shares following an additional issue, while 5 percent would be existing shares.

"I will retain a majority stake after the IPO. I don't have any plans to quit the business," Konovalov, Inprom's general director, told reporters.

Inprom will begin its IPO roadshow of several European cities at the end of September or the beginning of October, Konovalov said. Investment bank Trust is organizing the float.

Inprom, which operates a network of steel service centers in the European part of Russia, will use the proceeds to invest in new service centers and to purchase and modernize equipment.

The company had planned to invest 4.2 billion rubles ($165.4 million) from now to 2011, but Konovalov said the investment program would be revised in August.

Inprom plans to raise metal sales to 900,000 tons worth about $600 million in 2007, from 706,000 tons worth $426 million last year, he said. Sales could pass 1 million tons in 2008. Inprom operates 25 service centers and intends to increase this number to 42 by 2012, spreading into large Siberian cities such as Omsk, Tyumen, Novosibirsk, Krasnoyarsk and Irkutsk.

Konovalov said it cost about $10 million to open a new service center.

"After 2012 we will examine regions in neighboring states -- Kazakhstan, Belarus and Ukraine," Konovalov said.