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. Last Updated: 07/27/2016

RusAl Restarts Plans for Hong Kong IPO

HONG KONG — United Company RusAl, the world's top aluminum producer, has restarted plans for a listing on the Hong Kong exchange, seeking to raise about $2 billion at a time when it is trying to pay down a heavy debt load.

The company, controlled by Russian magnate Oleg Deripaska, plans to list the initial public offering by the end of the year, according to a source familiar with the matter.

But the source said there were still several key steps that the company needed to take before moving ahead with its plans to raise between $1.5 billion and $2.5 billion from the IPO.

RusAl, working to restructure about $16 billion in debt, will likely need approval from both creditors and Hong Kong regulatory authorities before the IPO. Sources were not authorized to speak publicly about the offering.

Last week, RusAl repaid debts worth $85.9 million to Alfa Bank after the private lender threatened to pursue the bankruptcy of two RusAl units.

RusAl first pursued the Hong Kong listing late last year before the financial markets dropped. The company could not be reached for comment on Monday.

Deripaska, rated Russia's richest man by Forbes magazine before the financial crisis struck last year, is in protracted talks with Russian and international lenders to restructure the debts faced by his various companies.

According to the Sunday Times, RusAl is ready to file a prospectus for a Hong Kong listing, which will value the firm at $30 billion. 
Directors of RusAl are expected to approve the deal and file an application before the week's end if the board approves, the newspaper said on Sunday without identifying its sources.

RusAl plans to list 10 percent of its shares in Hong Kong in an offering handled by Credit Suisse and Goldman Sachs, the paper said.