Evraz PLC, Russia’s largest steelmaker by production with operations in Pueblo, has a $500 million target for an initial public offering of shares in its North American unit, according to two people with direct knowledge of the plans.
The final result will depend on market demand, the people said, declining to be named as the information is not public. The unit, Evraz North America Ltd., filed for the right to sell a stake of about 25 percent to 35 percent in the U.S., according to a prospectus to the Securities and Exchange Commission dated Sept. 26, which used a $100 million figure as a placeholder.
The North America unit includes the Pueblo mill, which began operations in 1881 as Colorado Fuel and Iron Co. The mill produces seamless pipe for the oil industry, railroad rail and reinforcing rod and bar.
The unit will use some of the proceeds from the IPO to buy the 49 percent stake of a Canadian business that it doesn’t already own, according to the filing.
Evraz’s media service declined to comment on the sale.
The unit could be worth between $2.1 billion and $2.3 billion on a debt-free basis, Deutsche Bank AG said in report Monday. Assuming 25 percent to 35 percent is offered, the deal may raise $225 million to $385 million, according to the bank’s estimates.
