UC RUSAL places shares with 229 investors, VEB biggest

 

* Has option to float a further 1.4 percent of company 

 

* N. Rothschild, Paulson take near 0.5 percent stakes 

 

MOSCOW, Jan 25 (Reuters) - UC RUSAL, the world's biggest aluminium producer, will place shares with 229 investors in its initial public offering, with Russian state-run bank VEB taking up the largest amount. 

 

The company, being taken public by Oleg Deripaska to help pay down a mammoth debt-pile, confirmed on Monday the offer price would be HK $10.80 per share, in the middle of an expected range.   

 

Its Paris-listed global depository shares will be placed at 19.91 euros or $28.08, with one GDS representing 20 Shares.   

 

RUSAL said it may issue 225 million extra shares under the global offering, increasing the total stake to be floated to just under 12 percent, but had yet to exercise the option. 

 

If the over-allotment option was exercised, VEB would hold a 3.11 percent stake in RUSAL, if not then its stake would be 3.15 percent. 

 

Other major buyers will be NR Investments Limited, controlled by banker Nathanial Rothschild, with a 0.47-0.48 percent stake, and hedge fund Paulson & Co, with 0.47 percent. 

 

John Paulson, who runs the fund, is famous for making billions of dollars betting the subprime mortgage market would collapse in 2007. 

 

Asian investors Kuok Hock Nien, Kerry Trading Co. Limited, Cloud Nine Limited and Twin Turbo Limited will have 0.09 percent of shares between them. 

 

Dealing in the shares was expected to start on Jan. 27. 

 

(Reporting by Aleksandras Budrys; Editing by John Bowker and Dan Lalor)