Mechel, one of the leading Russian mining and steel groups, announced on Tuesday, April 27 that it has launched a public offering for the sale by certain shareholders of preferred shares and preferred American Depositary Shares (ADSs), each of the latter being equivalent to one half of one preferred share.
Accordingly, the preferred shares and preferred ADSs are being offered by the Justice family. The Justice family proposes to offer up to 49,952,488 preferred ADSs, representing 24,976,244 preferred shares, outside the Russian Federation, in addition to an offering of preferred shares to Russian and international investors. The price range has been set at between $21.00 and $27.60 per preferred share and $10.50 and $13.80 per preferred ADS.
The public offering has been registered with the US Securities and Exchange Commission under an automatic shelf registration statement filed by Mechel.
Morgan Stanley and Renaissance Securities are acting as Joint Global Coordinators and Joint Bookrunners for the public offering, which, according to Reuters, will raise between $524-$689 million if it is priced between the announced range.