July 24, 2018 / 8:50 PM / a year ago

Russia's petrochemical giant Sibur prepares for IPO - sources

MOSCOW, July 24 (Reuters) - Russian petrochemical company Sibur is preparing for an initial public offering (IPO) potentially worth between $2 to $3 billion and which may happen by the end of the year, financial market sources told Reuters.

One of the three financial market sources familiar with Sibur plans said that the company is looking at the possibility of an IPO in Moscow and London and may raise between $2 to $3 billion.

Another of the three sources said that the company was looking to raise "a couple of billion dollars" from the deal.

Asked about a potential IPO, Sibur said in a written reply to Reuters that it is considering different "strategic options" how to finance its growth.

Two of the three sources said that JP Morgan and Russia's Gazprombank are among possible arrangers of the deal. Gazprombank and JP Morgan did not immediately reply to Reuters' requests for a comment.

Businessman Leonid Mikhelson, the head of and a major shareholder in Russia's largest gas producer Novatek, owns 48.5 percent of Sibur. His business partner Gennady Timchenko owns 17 percent, while China's Sinopec and Silk Fund control 10 percent each.

There was no final decision whether only existing shares would be involved or Sibur would issue new shares for the IPO as well, the sources said.

Sibur is currently constructing a petrochemical complex in western Siberia known as ZapSibNefteKhim, which will be one of the world's five biggest petrochemical plants, part of a play by Russia to capture more of the value from the oil it produces.

Its another project, a gas chemical complex in Russia's Far East will require preliminary investments of up to $8 billion. Sibur is looking for Asian partners to share the risks for the latter.

Reporting by Oksana Kobzeva and Olga Popova Writing by Katya Golubkova Editing by Ros Russell

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