OREANDA-NEWS. One of the largest steelmaking companies in the Russian Federation "Severstal” begins meetings with the investors for the placement of a part of its shares in the form of global depositary receipts at the London stock exchange.

According to Reuter, "Severstal" is aimed at increase in number of shares in the free float up to 25 %.

"Severstal” belongs to Alexey Mordashovu through a group of legal persons, including the company, which will offer shares during IPO (Frontdeal.) by approximately 90 %. A. Mordashov is going to sell a part of the package in connection with the placement of GDR with intention to increase free float after IPO up to 25 %.

"Severstal" also plans one more increase in the capital "immediately" after the placement of shares in London. New shares will be placed on the open subscription.

The coordinators and book runners of the placement are Citigroup, Deutsche Bank and UBS. The press release of the company reads that the option for organizers is determined at the rate of up to 15 % from GDR placed during IPO.

In September "Severstal" has declared the placement of 85 million additional ordinary shares, or 8,4 % of the increased capital. Sources in bank circles informed earlier that "Severstal" can attract up to $1,5 billion through the placement of 10 % of shares in London.

Now, the capital of "Severstal" is divided into 930,8 million ordinary shares. In case of the placement of all declared issue the volume of shares in circulation will increase up to 1,02 billion. Thus, 85 million shares of the additional issue make 8,4 % of the increased capital of "Severstal".