Russian coal group plans London flotation

Another foreign mining outfit looks poised to join the London stock market.

Russian coal group OAO Koks today said it would launch an initial public offering of its shares in both Moscow and London in the near future, raising about £400 million in the process.

The company is controlled by Boris Zubitsky and his two sons, and based in Siberia.

Russia's IPO market emerged from two consecutive barren years to raise about $5.5 billion (£3.5 billion) in 2010, and analysts have said private issuers could raise up to $30 billion this year given the right market conditions.

Koks said in a statement it would use the proceeds of the deal to fund its investment programme.

Chairman Evgeniy Zubitsky said: "The proposed IPO will enable us to increase the level of self-sufficiency in obtaining key raw materials and achieve future growth."

The company said it made a profit 4.6 billion roubles ($150.5 million) in 2009, on revenue of almost 27 billion roubles.